Mahindra Group subsidiary acquires stake in Brazil’s Complex IT
Indian software unit Mahindra Satyam has reportedly acquired a 51% stake in Brazilian consultancy services provider Complex IT.
Arvind Malhotra, head of Latin American operations at Satyam, told Reuters that the company had already paid $6.5 million for the stake, and had an expected total expenditure of $20-223 million over an 18-24 month period, dependant on certain pre-agreed milestones being achieved.
“This combination of Complex and Mahindra Satyam strengthens our commitment to the Brazilian market, which is one of the fastest growing enterprise solutions markets,” Malhotra added.
Complex IT offers consultancy services on the use of SAP AG’s business management software.
As part of the merger, the Brazilian firm brings 500 staff and estimated annual revenues of $50 million, as well as customers such as C. Vale Cooperativa Agroindustrial.
The acquisition works in favour of the Mahindra Group’s target to double its revenue by 2015.
Satyam said it expects the merger to complete in March this year, and it also has the option of purchasing the remaining 49% of Complex IT.