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Mahindra Satyam, a consulting and IT services provider, has acquired a 51 per cent stake in Brazil’s Complex IT, an SAP consulting provider in Brazil.
The Hyderabad-based company has made an upfront payment of $6.5 million of the total of up to $23 million. The remaining would be paid after 18 months, but on achievement of certain milestones, Mahindra Satyam Global Head (Latin America & Strategic Accounts) Arvind Malhotra said.
The Mahindra group company also has the option to acquire the balance 49 per cent in the Brazilian firm, which has revenues of $45 million and employs 500 personnel. Brazil is the second-fastest growing geography in the world for SAP AG, the enterprise resource planning software provider. Software revenues for SAP AG grew 20 per cent last year.
“We look forward to expanding our market presence and offer global delivery capabilities to our customers,” Malhotra said, adding both Tech Mahindra and Mahindra Satyam operate as a single entity in Brazil.
IT spend in Brazil
The current spend on IT by companies in Brazil is about $70 billion, with $36 billion spent on services and software.
The companies will focus on developing solutions for enterprise solutions market within Brazil, and both companies would sell proprietary solutions for manufacturing, financial and consumer services companies.
Tech Mahindra, Satyam’s parent company, and the country’s sixth-largest software services company, is also looking to make acquisitions.
In September 2012, it acquired a 51 per cent stake in Comviva Technologies, a Bharti group company, for Rs 260 crore.
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