Satyam Acquires Caterpillar

Satyam Computer Services Ltd. and Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, have agreed to terms for the sale of Caterpillar’s Market Research and Customer Analytics (MR&CA) operations. The deal calls for Satyam to acquire Caterpillar’s MR&CA intellectual property and assets for $60 million. Satyam will also launch a business unit to provide MR&CA solutions and services globally to Caterpillar and to its other customers in various industries.

The acquisition will strengthen Satyam’s relationship with Caterpillar. Satyam will now support Caterpillar in segmentation, promotions, forecasting, new product development, service, validation, and customer survey execution, among other areas.

“We were honored to be named one of Caterpillar’s few strategic partners in 2005, and this acquisition further demonstrates the trust both organizations have in each other,” said Satyam Chairman B. Ramalinga Raju. “It also accelerates development of our business transformation capabilities and further enhances our end-to-end business solutions—from strategy on through to BPO. It is a significant step in our march toward becoming true business transformation partners with our customers.”

“We are pleased to expand our relationship with Caterpillar,” said Subu D., the director and senior vice president of Satyam’s Manufacturing and Automotive Group. “This acquisition provides us with a world-class platform to drive leadership and innovation in this space. Satyam will unlock the potential in the intellectual property and assets to offer high-end, differentiated MR&CA solutions and strategic services to Caterpillar and our other global customers.”

Caterpillar’s MR&CA IP and assets will complement Satyam’s business consulting capabilities, deep industry knowledge, and market research processes, enhancing Satyam’s offerings in these areas and enabling it to establish itself at the forefront of the substantial KPO market. According to a NASSCOM study, the KPO industry will reach US$17 billion by 2010, with India accounting for about $12 billion. Market research and analytics—tools and processes inherent in organizations’ strategic planning—will constitute about 25 percent of that sum. Satyam is well positioned, thanks to the acquisition, to offer these strategic services to the greater marketplace, a step in line with its objectives to transform its clients’ businesses.

To accommodate Caterpillar’s MR&CA requirements, as well as those of other organizations, Satyam will launch innovation centers in India, Europe, North America, Latin America and Asia Pacific. These facilities will enable Satyam to provide a full suite of innovative services—specifically, the gathering, storing, accessing, and analyzing of data—to global companies in manufacturing, financial services, healthcare, telecommunications, and other industries.

Leave a Reply