Mahindra Satyam resolves two acquisition matters

Mahindra Satyam resolves two acquisition mattersWhile there is still no clarity on Mahindra Satyam's acquisition of the Caterpillar unit, the IT major has resolved its issues with two other firms namely, US-based Bridge Consulting and Belgium-based S&V Consultants which was acquired by Satyam in April 2009.

The disputes occurred after the former chairman Ramalinga Raju accepted the fraud done by the company in its accounts. After the company went through its worst phase ever, the target companies backed off from it asking for guarantees on payments, due under the buyout agreement.

For instance, in the case of S&V consultants, Satyam agreed to buyout the firm 22.5 for million euros, out of which 14 million euros were paid in April 2009 but after the company was scandalised, the Belgium-based company asked for payment guarantees out of which 4 million euros were due in April 2010 and the rest of the amount in the same period next year.

However, the deal with the Caterpillar's market research and customer analytics business unit is still under ambiguity as after the Raju's disclosure, the company demanded for the balance $40- million (out of the total $60 million) which were due under the Promissory Note.