"This merger is a key part of our strategy to deliver industry leading performance," said Vineet Nayyar, vice chairman and managing director of Tech Mahindra and chairman of Mahindra Satyam.
"It is nearly three years since Indian IT services firm Tech Mahindra secured a majority stake in local rival Satyam, so the only surprise about the news that the two companies are to merge is that it has taken so long to happen," said Ovum’s senior analyst Ed Thomas.
"That is not to say that this announcement bring the saga to an end," he added. "It will take the rest of the year for the merger process to be concluded and no name for the combined entity has yet been announced. On this latter point, it will be interesting to see if the Mahindra Group, which will own over one-quarter of the new operation, decides to finally rid itself of the Satyam brand, which was badly tarnished by the accounting scandal that came to light in 2009."
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