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V. Rishi Kumar

While acquisitions are on cards, Satyam visualises strategic alliances as key for its growth across the world.

HYDERABAD, Jan. 22

SATYAM Computer Services Ltd. has decided to tread cautiously with regard to acquisitions and consolidation in the marketplace, given the volatile business conditions.

The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said "though we have an open mind on acquisitions and have not set any geographical barriers for the same, we are not in a position to comment on the acquisition strategy."

Given the volatile business conditions, the current valuation is both negative and positive. While positives are with regard to pricing which may be subdued for some more time but will offer greater value for value acquisition, negatives are plenty.

With one of the objectives being to acquire good companies, Mr Raju said "we are constantly monitoring the situation. We are not in a position to make a statement on acquisition strategy right now. We are closely evaluating the situation. There are no constraints for acquisitions. We need to get the right company, we need to analyse what is the right time before we embark on acquisitions."

With regard to debt retirement, Satyam has already retired about Rs 200 crore of debt.

The remaining debt is negligible. While acquisitions are on cards, Satyam visualises strategic alliances as key for its growth across the world.

Satyam has pursued the strategy of building alliances with global technology leaders to service the needs of the customers. A recent joint venture with Computer Associates, which operates out of Mumbai, is one such strategic initiative.

On the other hand, while Satyam is expected to complete the merger of three marketing subsidiaries during the quarter, it is divesting its stake in Satyam Infoway.

This it expects to complete in the first half this year.

The company is in parleys with several players, both Indian and overseas, and has enlisted the services of Merrill Lynch to guide the company.

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