Satyam seeks buys to boost sports vertical
SOURCE: SIFY
DATE: August 6th, 2008
ARTICLE
Satyam Ltd, the fourth largest IT services provider in India, is in acquisition talks with at least two firms to boost its emerging sports vertical, the company’s senior official said. NYSE-listed Satyam, however, did not provide the names of the target firms or the funds involved.
Hari Thalapalli, global marketing & communication head, Satyam Computer, told DNA Money that two-three companies were being studied for acquisition in the sports vertical. “We may make an announcement this year,” he added.
The sports vertical, which has bagged IT deals with Federation Internationale de Football Association (FIFA) for world cups in 2010 (Johannesburg) and in 2014 (Brazil), contributes $20-25 million to the company’s revenues. Thalapalli said, “Some of the bigger players are getting into this vertical now. We are always looking for companies, and the sports vertical is a big focus area for us.” He, however, was mum on the vertical’s revenues and investments. “This vertical is growing at a faster rate than the organisation,” Thalapalli said.
An analyst said that Satyam is sitting on a healthy cash reserve, which it may use for the acquisitions. In a note to clients, First Global analyst Hitesh Kuvelkar said, “Satyam had cash and bank balance of Rs 4,852 crore at the end of the first quarter of FY09 and this can be used for inorganic growth, especially in the BPO and KPO businesses.”
With its workforce of 52,000, Satyam has 28 development centres across the globe, including in Bangalore, Chennai, Bhubaneswar, Gurgaon, Beijing, Budapest, California, and Dalian, among others.
To create the awareness of its brand in the sports vertical, the company will promote a football event for about 4,000 college teams in India. Satyam will organise the tournament for 10 years.
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