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Satyam
acquires Knowledge Dynamics
Our
Regional Bureau / Hyderabad July 22, 2005
www.business-standard.com
Satyam
Computer Services Limited, the Hyderabad-based leading
global consulting and IT services provider, has acquired
Singapore-based Knowledge Dynamics Pte Limited, a high-end
consulting solutions provider in business intelligence,
for a consideration of $3.3 million.
The
acquisition is an all-cash deal of which $1.8 million
is initial payment and the balance would be paid over
two years.
An
additional sum of $2.2 million would be made as earn out
payments based on certain set revenue and profitability
targets over the next three years.
The
chief executive officer of Knowledge Dynamics, Venkat
Narayanan, will continue to lead the company's team following
the acquisition.
"This
acquisition should accelerate our aspiration of leadership
in emerging competencies like business intelligence and
analytics; synergising with our demonstrated leadership
in data warehousing and data integration," Satyam's
founder and chairman B Ramalinga Raju told newspersons
here on Thursday.
He
said that synergies between Knowledge Dynamics and Satyam
would lead to the latter emerging as a partner of choice
for its customers globally, as it would now be able to
offer the entire business intelligence and data warehousing
footprint of intelligence, insight and integration.
Knowledge
Dynamics currently has 75 professionals and the company
posted a revenue of over 6 million Singapore dollars in
2005.
"Inorganic
growth is a very important path in our growth strategy
and it is an ongoing effort," Raju said in reply
to a question whether Satyam, which had acquired City
Soft during the fourth quarter of last fiscal, has further
plans of acquisition.
Stating
that every acquisition was bringing new customers to the
Satyam's fold, Ram Mynampati, president (healthcare and
commercial businesses), Satyam, said that while City Soft
had added 22 customers, Knowledge Dynamics would be adding
20 customers to the Satyam's list.
Satyam's
chief financial officer Srinivas Vadlamani said that Satyam
would leverage this acquisition to offer solutions on
knowledge process outsourcing through Nipuna, the company's
business process outsourcing subsidiary.
He
said that Nipuna was expected to achieve cash break-even
during the second half of the current fiscal and post
net profits from next year onwards.
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