Satyam plans acquisitions in Europe
By siliconindia staff writer   |   Wednesday, 27 October 2004, 19:30 IST
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HYDERABAD: Satyam Europe, the 100% European subsidiary of Satyam Computers, is in the process of finalising a mid-sized acquisition, most probably, a consulting firm in Europe. While the possibility of a US acquisition by Satyam has been talked about for some time now, talk of a European takeover is recent. Apart from bridging the consulting gap, the acquisition is also expected to provide the strategic entry-point for Satyam in the European region, where operating across 25 countries is a major challenge, Keshab Panda, head of Satyam Europe, told ET from Basingstock in the UK. “We are ready for the acquisition and are working out the right fit among various options currently being examined,” he added, refusing to divulge further details. Attempts by Satyam to acquire companies in Europe are seen as an effort to reduce dependence on the North American markets. It is rumoured that one of the options being looked at includes a rival company that will enable the company to simultaneously increase revenues in the continent. During the last quarter, revenues from this continent contributed 14% to total revenues. The North American markets contribute nearly 74% to total revenues. Satyam is all set to kick-off its seventh operation in Europe on November 2 with the opening of a development centre in Hungary that would be employ about 60 people soon. The centre will provide level 1 support to all other centres in the region with Germany being a major focus area for servicing, Mr Panda said. This highlights the focus that Satyam is placing on Europe, where it has operations in six countries currently and will spread to almost all in the course of the next three years. The company has 700 people working in the region. This number will be increased, keeping in view the aggressive plans for Europe, where it has 57 clients, he said. European IT spending in ’01 was estimated at around $400bn and expected to reach $495bn in ’06.

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