Satyam buys Motorola's software unit in Malaysia

Satyam Computer Services, the country’s fourth largest software exporter, has acquired US mobile phone-maker Motorola's software development centre in Malaysia for an undisclosed sum.

The assets of the centre at Cyberjaya — the IT hub of Malaysia — and 128 staff currently employed there, will be integrated with Satyam's telecommunications practice.

When the deal is closed, which is expected by December 31, Motorola will contract directly with Satyam for development services of its market-leading network management software.

The Satyam stock closed around 7 per cent higher over its previous day's closing on the Bombay Stock Exchange on Monday.

Analysts say that while the deal will help Motorola cut costs, it will provide an assured revenue stream to Satyam, besides an opportunity to cross-sell services to Motorola.

Last month, Motorola outlined a plan to save $800 million in costs in 2009, by cutting 3,000 jobs, or 4.5 per cent of the company's workforce, and narrowing down its focus to its strongest regions such as North America.