BY STAFF REPORT
India’s IT services firm Mahindra Satyam has made its first foray into Brazil’s information technology market by acquiring a controlling stake in Sao Palo -based IT consultancy firm Complex IT.
The Indian firm has not disclosed the financial details of the deal. But, according to the India’s Economic Times, Satyam has made an initial payment of $6.5 million and would pay the remaining $20-23 million over the course of the next two years.
The acquisition helps Satyam get a foothold in Latin America’s growing IT and outsourcing market.
There are reports that Satyam may ultimately purchase the remaining 49 percent stake in Complex IT in the days ahead.
Complex IT has more than 120 active clients, including L’Oréal and Petrobras, a workforce of over 500, and the company earns over $82 million annually.
Following the acquisition, Satyam and Complex IT will jointly sell their products and services in Brazilian market, particularly to large manufacturing, financial and consumer services companies.
“This combination of Complex and Mahindra Satyam strengthens our commitment to the Brazilian market, which is one of the fastest growing enterprise solutions markets,” said Arvind Malhotra, Global Head, Latin America & Strategic Accounts, Mahindra Satyam.
Brazil is the second fastest growing market for SAP AG. Software revenues for SAP AG grew 20% last year.
According to Satyam, Brazilian companies currently spend an estimated $70bn on IT annually and another $36bn on services and software. As Brazil gears up to host FIFA 2014 and the Olympics in 2016, it would only provide an increased impetus to an already rapidly growing IT services market.