The merger of Tech Mahindra and Mahindra Satyam (Satyam Computer Services) is largely seen as a positive deal by analysts, considering that the combined entity will become sixth largest software services provider. Tech Mahindra and Mahindra Satyam’s boards approved merger of the two firms on Wednesday. The combined entity will have revenue of USD 2.4 billion, 75,000 employees and 350 clients.
Existing shareholders of Satyam will get two shares of Tech Mahindra for every 17 shares held (Swap Ratio). The combined entity, with revenues of $2.4 million, will generate more value for shareholders. Share prices of both companies rose after the merger announcement. The bigger market analysts has configured this merger as win-win for everyone.