Satyam rules out takeover by large global players

By siliconindia staff writer   |   Friday, 04 June 2004, 19:30 IST
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HYDERABAD: Satyam Computer Services has categorically ruled out any acquisition bid by large global system integrators, reports a financial daily. The company has said that any acquisition bid is “not in the interest of the investor community and business”. Speaking at the global analysts meet organised at the Satyam Technology Centre here on Thursday, Satyam’s Chairman B Ramalinga Raju was responding to a particular query from an analyst on whether the company was open to acquisitions by large global players in the interest of investors. “We are on an exciting journey riding on the technology wave. The future is expected to be bright and we are keen to prove that we should perform as other global players, if not better than them. There is an emotional attachment when one is engaged in business of building a firm such as Satyam. In both technical and financial perspectives, acquisition is not in the interest of the business,” he said. Emphasising on the growth prospects of Satyam, Raju highlighted that the company would tread the inorganic route by targeting domain competencies in specific verticals or look out for opportunities into new geographies. Satyam’s BPO subsidiary, Nipuna Services, is likely to break-even and make a profit this year. The company is clearly on the path to establishing leadership in verticals such as banking and finance and healthcare. Though bulk of the current revenue comes from transaction processing, the model may see some change as Nipuna is placing emphasis on domain knowledge and ownership of business processes, Raju said