Tech Mahindra Ltd., partly owned by
BT Group Plc., plans to acquire software companies in Latin
America to help more than double sales in the next three years.
Tech Mahindra aims to buy companies that write software
codes for telecommunications, oil and gas and financial services
industries, Vivek Kalra, a vice president, said in an interview
today. The acquisition will be done jointly with Satyam Computer
Services Ltd., 43 percent owned by Tech Mahindra, he said.
The Pune, western India-based company and larger rival Tata
Consultancy Services Ltd. seek to increase business in Latin
American countries as telecom mergers and acquisitions in
emerging markets generate new contracts. Tech Mahindra aims to
boost revenue to $5 billion in part by acquiring companies, said
Rajesh Chandiramani, head of the company’s India sales.
Companies in Latin America spend more on information
technology “than what China spends, more than what India
spends,” Kalra said. “There’s huge potential out there.”
Tech Mahindra’s shares, which have declined 29 percent this
year, added 0.9 percent to 700.9 rupees at 12:16 p.m. in Mumbai.
The software exporter won a Mexican telecommunications
company as its first customer in Latin America in the quarter
ended in June, Kalra said.
Tata Consultancy, India’s largest software exporter, bought
all the shares it didn’t own in TCS do Brasil, its Brazilian
joint venture, for $33 million in May 2007. The company earlier
acquired Chile’s Comicrom for $23 million in cash.
Spending on Software
Worldwide IT spending by businesses and governments, which
includes computer equipment and software purchases, will grow 7
percent this year to $1.6 trillion, after falling by 8.6 percent
last year, according to an Oct. 15 report from Forrester
Tech Mahindra gained control of Satyam in May last year in
an auction held by a government-nominated board after the
Hyderabad-based company was embroiled in India’s biggest
corporate fraud investigation. The two companies had a combined
revenue of 101 billion rupees ($2.3 billion) in the year ended
BT owns 24.5 percent of Tech Mahindra, according to data
compiled by Bloomberg.
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Ketaki Gokhale in Mumbai at
To contact the editor responsible for this story:
Young-Sam Cho at