Mahindra Satyam is close to buying 20-30% in Comviva Technologies, the mobile software development unit of Bharti Enterprises, people familiar with the development said. A Bharti team in charge of selling its non-core business is in talks with Mahindra Satyam. A deal could fetch Bharti R400-500 crore. PwC is an advisor to the transaction.

Comviva, previously called Bharti Telesoft, makes software that allows operators to provide value-added services like music and video on mobile phones. It has clients in more than 85 countries.

A Bharti spokesperson said the company does not comment on market speculation. When contacted, Indraneel Ganguli, senior vice-president, Mahindra Satyam said: ?I cannot comment on the query.?

Last year, Tata Consultancy Services and HCL Technologies had shown interest in picking up a strategic stake in Comviva, but no formal bids were made. It is now learnt that Mahindra Satyam has emerged as the preferred bidder for the stake.

Bharti Enterprises owns Bharti Airtel, India?s largest mobile phone operator by subscribers, which has traditionally been Comviva’s main client. In 2005, private equity fund Sequoia Capital and Cisco Systems bought an unspecified stake in Comviva for $13.5 million.

Big-ticket acquisitions to cater to specific IT segments are important for Mahindra Satyam, which has begun the process of merging with Tech Mahindra after achieving ?near normalcy?.

With more time and money spent downloading music and videos on cellphones, value-added services (VAS) are becoming a huge business opportunity, attracting companies like Mahindra Satyam. With voice tariffs low, VAS has emerged as the fastest-growing revenue segment for mobile operators. For different mobile companies, VAS accounts for 7-10% of revenues.

After buying a strategic stake in Dion Global Solutions recently, Mahindra Satyam is now negotiating with 2-3 firms in healthcare, engineering services and BFSI.

?We are considering acquisitions in these areas. We will be completing the buys in 9-12 months,? CP Gurnani, CEO, Mahindra Satyam told media persons at a recent Nasscom Summit.