Tuesday, November 11, 2008

Satyam to buy Motorola’s software unit in Malaysia

Satyam Computer Services has decided to acquire US mobile maker Motorola’s software development centre (SDC) in Malaysia.

Satyam will absorb the centre’s 128 employees and take over the units assets as part of the deal.

The acquisition is expected to create synergies and boost India’s fourth-largest software exporter’s competitiveness in Malaysia and Asia Pacific. However, Satyam officials declined to divulge financial details of the deal that is expected to be completed by December end.

The SDC is part of Motorola’s Home and Networks Mobility business and focuses on network management system development.
“This strategic acquisition will integrate and strengthen Satyam’s product engineering services to network equipment providers and operators in the areas of element management, mobile solutions, and access networks,” said Satyam Technology Infrastructure business unit head Nishith Mathur.

Motorola is an existing customer of Satyam. After recording $397-million loss in the third quarter last month, the mobile maker had announced that it would cut costs by $800 million next year. The new deal is part of the company’s decision to exit from non-core business.

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