Satyam buys Citisoft for $23.2 million

Satyam Computers has acquired Citisoft, a specialised business and systems consulting firm with focus on investment management.

The consideration for the acquisition consists of a guaranteed $23.2 million payable over a three-year period and an additional performance-based payment also of up to $15.5 million, to be paid over a three-year period.

Citisoft, which has a presence in London, Boston and New York, is expected to end April 2005 with revenues of $16 million.

The company will operate as a subsidiary of Satyam and will be a part of Satyam's financial services group (FSG). The acquisition would help Satyam build a global footprint in the financial services sector, B Ramalinga Raju, founder-chairman of Satyam, told reporters here today.

"This acquisition will help us strengthen our consulting practice, provide industry-specific business solutions and enhance our global leadership,"Raju said. Satyam's acquisition plans do not end here.

"We will look at acquisitions that will provide us depth in our domain areas besides strengthening our horizontal competencies. Our acquisition strategy will also focus on leveraging our strength in those geographical areas where we are not strong," Raju said.

On the attrition rate in the company, Raju said although the current rate was around 15 per cent, the ideal rate would be 10 per cent.

"Around 4 per cent of the attrition involve forced attrition where employees are forced to leave because of low performance. We will try to bring down the atrition rate through various methods like leadership programmes," he added.

The company plans to set up the Satyam School of Learning to bring about leadership qualities among employees and aspirants. Satyam added 5,132 associates in 2004-05, taking the total strength of the company to 19,164.

This apart, the company also became the youngest in the global information technology (IT) industry to cross the milestone of 20,000 associates, along with its subsidiaries.

Satyam's business process outsourcing subsidiary Nipuna, that had 1,367 employees as on March 31, 2005, will also be ramping up its headcount to meet additional business requirements from the existing and new customers.

New look

• The consideration for the acquisition consists of a guaranteed $23.2 million payable over a three-year period
  
  
• Citisoft, which has a presence in London, Boston and New York, is expected to end April 2005 with revenues of $16 million
  
  
• The company will operate as a subsidiary of Satyam