The sullied Satyam name and brand will soon disappear from the IT landscape, after Tech Mahindra formally closed the book on the long-running saga to acquire and integrate the fraud-scandal hit outsourcer.
Tech Mahindra has finally completed acquisition of Satyam, dropping the name of the accounting-scandal hit outsourcer from its new-look brand and logo.
In a statement released on Tuesday, the company announced the newly merged entity, Tech Mahindra, which has revenues of US$2.7 billion and 84,000 staff dispersed across 46 countries.
The final chapter of the long-running saga surrounding Satyam Computer Services (SCS), whose founder B. Rama Raju admitted in 2009 to inflating the company's cash reserves by US$1 billion, was closed on June 11, when the Andhra Pradesh High Court approved the merger. This followed approval from the Mumbai High Court, despite legal opposition from some shareholders, investors and creditors, who disputed the fire-sale terms under which Satyam was sold.
Under the deal, SCS shareholders will receive two shares of Tech Mahindra for every 17 shares of Satyam held as on the as-yet-unannounced record date fixed for the merger. Satyam's shares will not be available for trading after this record date.
Tech Mahindra executive vice chairman Vineet Nayyar said the companies had worked for the best interests of all stakeholders.
"Over the past four years while we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our stakeholders," Nayyar said.