Oil major BP handed out a major IT outsourcing contract to five global IT companies. The deal has been awaited for long and comes at a time when deal flow has slowed down for the software sector. While the deal value was not disclosed by the companies who got the award, this story by Mint has quoted a BP spokesperson attributing the deal value at $1.5bn. BP will save about $500mn by reducing its number of vendors to 5, says the report.
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Wipro stays true to forecast, hikes September guidance
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Wipro’s performance in the June 2009 quarter was good, with revenues falling between the range it had given in April 2009. The stock markets, however, seemed to have bargained for more, as the stock is down about 2%. Measured in constant currency terms, IT companies have reported modest performances in the June 2009 quarter, but when you translate them from currencies like pounds, euros and Australian dollars to USD and then to rupees, the effect can be quite significant.
Filed under: Companies, Information Technology, News Analysis, Azim Premji, June 2009, Results, Wipro
HCL Axon to acquire SAP practice of UCS Solutions
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HCL Axon, a software company implementing SAP and a subsidiary of HCL Technologies, has acquired the enterprise solutions SAP practice from UCS Solutions, part of the South African UCS Group. The acquired division does SAP implementation for retail and wholesale companies. The consideration is $7.7mn plus an additional payment depending on the growth achieved over two years.
Filed under: Companies, Information Technology, Quick News, Companies International, HCL Axon, HCL Technologies, M&A
Infosys June 2009 results a worry, currency fluctuations cushion earnings
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Infosys Technologies kicked off the earnings season on a positive note. Its results reflect a tough operating environment but exceeded its guidance and market expectations. The software major’s revenues declined by 2.9% over the preceding quarter to Rs 5,472 crore in the June 2009 quarter. Its net profit would have declined too but a 130% increase in other income kept net profit constant at Rs 1,915 crore. In dollar terms, its revenues declined by 0.1% sequentially and by 1.9% in constant currency terms.
Filed under: Companies, Information Technology, Top News, Infosys, Results
Tech Mahindra-Satyam: India’s first leveraged buyout?
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At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.
Filed under: Companies, Information Technology, News Analysis, M&A, Open Offer, Preferential Allotment, Satyam, Satyam Scam
TCS’ Q4 2009 results hit by poor business environment, outlook for the year remains weak
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TCS, which reported its results yesterday, had some good things to say. It has got more clients, revenues in its financial services segment grew and a weaker rupee propped up revenue growth. But the negatives were equally strong: billing rates have dropped, demand in key segments like manufacturing, telecom and hi-tech is slowing and outlook for the year appears gloomy.
Filed under: Companies, Information Technology, Top News, Results, TCS
Infosys Technologies Q4 revenues down 1.8%, profit up 2.6%
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The software bellwether Infosys Technologies’s business took a hit in FY’09. In the fourth quarter, its revenues fell by 1.8% to $1.1bn while its net profit grew by 2.6% to $321mn. These are figures compiled under IFRS accounting norms. But the company’s figures are much better under Indian accounting norms, due to the rupee’s sharp depreciation against the dollar.
Filed under: Companies, Information Technology, Top News, Guidance, Infosys, Results
Satyam Computer sold to Tech Mahindra
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Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.
Filed under: Companies, Information Technology, Top News, M&A, Satyam, Satyam Scam, Scam, Tech Mahindra
Satyam sale enters final stage today
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The board is expected to open financial bids on Monday submitted by a few bidders remaining at the last stage. Among them are believed to be Tech Mahindra, L&T, Cognizant Technologies and some private equity funds. If the gap between the first and losing bids is less than 10%, then there will be open auction. The highest bidder in the auction will be declared the new owner.