Satyam Computer Services, the fourth largest IT solutions and service provider, has acquired the software development centre of Motorola in Malaysia.

Under the arrangement, Motorola will divest from its software development centre in Cyberjaya, subsequently all 128 employees – along with the unit’s assets – will shift to Satyam.

The software development centre is a part of Motorola’s Home and Networks Mobility business, which does work in the area of network management around GSM (Global System for Mobile Communications) and CDMA (Code Division Multiple Access) standards.

The acquisition of the Motorola center in Malaysia is in line with Satyam's strategy to use the country as a key global services delivery location. However the company did not disclose that how much it was paying for Motorola's Cyberjaya center.

According to market experts, the latest 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.

The transaction, which is subject to regulatory and other customary conditions is expected to close by December 31, 2008.
 
Last month, the scrip of Satyam has touched its yearly low figure of Rs 213, but thereafter the counter has moved up quite smartly. 

In today’s session, the company stock touched intraday high and low of Rs 298.90 and Rs 279.25, but the scrip finally ended the day at Rs 296, up 7% compared to its previous close of Rs 276.

Indiabulls Securities, a leading broking services provider, in its latest research report dated November 4, 2008 has downgraded its rating on Satyam Computer Services, and advised its clients to hold the scrip with a target price of Rs 307.