Satyam acquires UK''s Citisoft
By Satyam Computer Services (2004 revenues: Rs3 | 22 Apr 2005
Satyam Computer Services (2004 revenues: Rs3,546.77 crore) has announced the acquisition of the UK-based-specialised business and systems consulting firm, Citisoft, for a guaranteed payment of $23.2 million and an additional performance based payment of up to $15.5 million, to be paid over a three-year period.
The initial acquisition is for a seventy-five per cent stake and the balance will be acquired in two equal instalments The transaction, which is subject to regulatory approvals, is expected to be completed by end-April 2005.
Citicorp is a Europe-based consultancy that focuses exclusively on investment management industry. Citisoft will operate as a subsidiary of Satyam and will be a part of Satyam's financial services group. The acquisition comes against the backdrop of increasing IT spend in the securities industry estimated at $ billion in 2004, 10 per cent of which can be attributed to the investment management segment of the industry which by itself is a $35-trillion market.
Citisoft has a global presence with offices in London, Boston and New York and has built an enviable reputation as the leading specialised investment management-consulting firm with the largest concentration of business consulting expertise. This strategic acquisition firmly positions Satyam as a significant global player in business and technology consulting services area for the investment management industry.
Commenting on the acquisition, B. Ramalinga Raju Raju, Chairman, Satyam said, "To further our objective to accelerate domain competency and expand our services as well as customer reach, we have acquired Citisoft, a highly specialised business and systems consulting firm that has focused exclusively on the Investment Management industry".
Ram Mynampati, president, commercial and healthcare businesses, Satyam, and chairman-designate of Citisoft, explained, "This acquisition will enable Satyam to build a unique position in the financial services sector and facilitate it to expand its footprint amongst European asset management companies by utilising the synergies between Satyam's global delivery capabilities and Citisoft's world-class industry expertise".