Satyam acquires Knowledge Dynamics

Satyam Computer Services Limited, the Hyderabad-based leading global consulting and IT services provider, has acquired Singapore-based Knowledge Dynamics Pte Limited, a high-end consulting solutions provider in business intelligence, for a consideration of $3.3 million.

The acquisition is an all-cash deal of which $1.8 million is initial payment and the balance would be paid over two years.

An additional sum of $2.2 million would be made as earn out payments based on certain set revenue and profitability targets over the next three years.

The chief executive officer of Knowledge Dynamics, Venkat Narayanan, will continue to lead the company's team following the acquisition.

"This acquisition should accelerate our aspiration of leadership in emerging competencies like business intelligence and analytics; synergising with our demonstrated leadership in data warehousing and data integration," Satyam's founder and chairman B Ramalinga Raju told newspersons here on Thursday.

He said that synergies between Knowledge Dynamics and Satyam would lead to the latter emerging as a partner of choice for its customers globally, as it would now be able to offer the entire business intelligence and data warehousing footprint of intelligence, insight and integration.

Knowledge Dynamics currently has 75 professionals and the company posted a revenue of over 6 million Singapore dollars in 2005.

"Inorganic growth is a very important path in our growth strategy and it is an ongoing effort," Raju said in reply to a question whether Satyam, which had acquired City Soft during the fourth quarter of last fiscal, has further plans of acquisition.

Stating that every acquisition was bringing new customers to the Satyam's fold, Ram Mynampati, president (healthcare and commercial businesses), Satyam, said that while City Soft had added 22 customers, Knowledge Dynamics would be adding 20 customers to the Satyam's list.

Satyam's chief financial officer Srinivas Vadlamani said that Satyam would leverage this acquisition to offer solutions on knowledge process outsourcing through Nipuna, the company's business process outsourcing subsidiary.

He said that Nipuna was expected to achieve cash break-even during the second half of the current fiscal and post net profits from next year onwards.