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As it begins the process of merging with Tech Mahindra after achieving ‘near normalcy', Mahindra Satyam is looking at acquisitions.
After picking up a strategic stake in Dion Global Solutions recently, the Hyderabad-based IT services company will acquire 2-3 firms in areas such as healthcare, engineering services and BFSI (banking, financial services and insurance).
“We are considering acquisitions in these areas. We will be completing the buys in 9-12 months,” Mr C.P. Gurnani, Chief Executive Officer of Mahindra Satyam, told Business Line on the sidelines of a three-day Nasscom Leadership Forum here. These acquisitions could be much bigger, Mr Gurnani said.
Mahindra Satyam picked up a 15 per cent stake for Rs 35 crore in Dion, which specialises in providing IT solutions for the capital markets. It, which clocked revenues of Rs 1,718 crore and a net profit of Rs 308 crore in the third quarter ended December 31, 2011, took nearly three years to restore normalcy.
Though most legal rows are over, the company faces a tax demand of Rs 617 crore from the Income-Tax Department for the period 2001-08 during when the fraud was perpetrated by the founder-Chairman Mr B, Ramalinga Raju. The Department had served a notice to attach its properties.
Winding down of ADS
Mr Gurnani said the winding down of ADS (American Depository Shares) has been progressing well. The company had decided to withdraw its ADS from the US bourses after failing to comply with strict regulations there following the fraud.
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