Tech Mahindra snaps up the rest of Mahindra Satyam

Tech Mahindra, which already owns 43% of Mahindra Satyam formerly Satyam Computer Services, said this week that it will buy the remainder of the company to form India’s fifth-biggest software services company. The stock deal is valued at about $1.2 billion.

The combined entity will have a market cap of about $3.4 billion, revenues of about $2.4 billion, employ more than 75,000 people and do business with about 350 clients across 54 countries.

Based on the agreed swap ratio of two Tech Mahindra shares for every 17 shares of Mahindra Satyam, on a pro-forma basis, the Mahindra group will own 26.3% in the combined entity,...