Date:22/07/2005 URL: http://www.thehindubusinessline.com/2005/07/22/stories/2005072201560400.htm

Back Satyam buys S'pore biz intelligence consulting firm

Our Bureau

Hyderabad , July 21

SATYAM Computer Services has acquired Knowledge Dynamics Pte Ltd, a Singapore-based, Asia-facing provider of business intelligence (BI) consulting services.

The deal was struck for an all-cash consideration of $3.3 million, of which $1.8 million is initial payment; the rest is to be paid over two years.

Knowledge Dynamics brings about 20-plus clients and 75 people specialising in the area of business intelligence.

This comes within a quarter of the strategic acquisition of Citisoft Plc, now a Satyam subsidiary, strengthening investment management space.

Speaking to newspersons, the Chairman of Satyam, Mr B. Ramalinga Raju, said: "This should accelerate our aspiration of leadership in emerging competencies such as BI and analytics."

Mr Ram Mynampati, President, said: "The data warehousing market is expanding rapidly worldwide offering great opportunity to tap new markets and segments. While Knowledge Dynamics has significant presence in the Asean region, together we can address the US and European markets."

Referring to inorganic growth, Mr Raju said that the company's M&A group is fairly active.

"Acquisitions are based on right kind of strategic fit and maximising shareholder value. Therefore, the approach is well thought out."

Consulting and enterprise solutions business account for about 37 per cent of the total company revenues. "Therefore, any acquisition is likely in this area since it adds value to the company's offerings. There is no fixed budget for M&A activity. It is flexible depending on the value such an acquisition brings to the table," Mr Raju said.

The company has invested about Rs 50 crore in the first half towards capital expenditure and expects to invest about Rs 175-200 crore during the current fiscal.

Mr Raju said: "During the quarter, Satyam registered an attrition of about 16.5 per cent. The company has embarked on the process to ensure that this level is brought down further. However, with large systems integrators expanding rapidly, this is bound to be part of the industry."

While Satyam added 1,341 associates, Nipuna acquired 245 resources during the first quarter. Satyam expects to induct about 5,000 people during the fiscal; the company employee strength is 22,782 associates spread across multiple locations.

The company has inducted Dr M. Rammohan Rao, Dean of Indian School of Business, as Additional Director.