In an all-cash deal, IT giant Satyam Computer Services Ltd and leading manufacturer of construction and mining equipment, Caterpillar Inc, have agreed on the terms for acquiring Caterpillar?s market research and customer analytics (MR&CA), intellectual properties (IP) and assets for $60 million.
Following the agreement, Satyam will launch a business unit offering MR&CA solutions and services globally to Caterpillar and to its clients in various industries. The acquisition will strengthen Satyam?s relationship with Caterpillar by segmentation, promotions, forecasting, new product development, services, validation and customer survey-execution among other areas. According to Satyam chairman B Ramalinga Raju, ?The MR&CA, IP and assets will complement Satyam?s business-consulting capabilities, market-research process and will establish us at the forefront of the substantial knowledge process outsourcing (KPO) market.?
As per a Nasscom report, the KPO industry is expected to reach $17 billion by 2010 with India accounting for about $12 billion and market research and customer analytics will constitute about 25% of that sum. Further, the company has proposed to launch innovation centres in India, Europe, North America, Latin America and the Asia Pacific region in order to accommodate the requirements of MR&CA.
Satyam has also agreed to buy Belgium-based supply chain management, S&V Management Consultants, in an all-cash deal for $35.5 million. As part of this transaction, it has also bought business-decision support software Equazion.