Motorola and Satyam Sign Strategic Transaction in Malaysia
Satyam to absorb Motorola’s Malaysia Software Development Center
Move will increase synergies and competitiveness for both companies
KUALA LUMPUR, Malaysia – Motorola and Satyam, a leading global consulting and information technology services provider, announced today that Satyam has acquired 128 employees of Motorola. This acquisition will create synergies and boost their competitiveness in Malaysia and throughout Asia-Pacific region. Motorola will divest from its software development center (SDC) in Cyberjaya. All 128 employees – along with the unit’s assets – will shift to Satyam.
The SDC is part of Motorola’s Home and Networks Mobility business and focuses on network management system development. “This strategic acquisition will integrate and strengthen Satyam’s product engineering services to Network Equipment Providers and Operators in the areas of element management, mobile solutions, and access networks” said Nishith Mathur, head of Satyam’s Technology Infrastructure business unit.
“This is a unique effort that will continue to drive Motorola’s strategy in Malaysia, will strengthen our competitive position, and improve cost structure and operational efficiencies,” said Sudhakar Ramakrishna, Corporate Vice President, Software Operations and WiMAX and LTE Engineering, Home and Networks Mobility.
When the deal is closed it is subject to regulatory and other customary conditions, but should be completed by December 31, 2008. Motorola will contract directly with Satyam for development services of its market-leading network management software.
“This partnership reinforces the promise of the Cyberjaya Multimedia Super Corridor – to attract new and dynamic research and development ecosystems,” said Virender Aggarwal, Head of Satyam’s Rest of the World Region. “In fact, Satyam is developing a 15-acre campus in the Super Corridor, which will create both operational efficiencies for related development projects and career opportunities for our new employees and many other people in area.”
Motorola employees who join Satyam will immediately have access to Satyam’s world-class training programs and they will gain exceptional career development opportunities.
“These Motorola professionals are steeped in capabilities that are in high-demand all over the globe,” Aggarwal said. “As such, they represent a very valuable group for our organization. We are always trying to increase our skills in strategic areas, and this agreement helps us in that regard significantly.”
For its part, Motorola is committed to delivering on customers’ expectations without disruption or distraction. “The Software Development Center provides significant efforts for both internal programs important to customer deliverables and for external Motorola’s global customers. Our commitment to those programs remains strong,” Ramakrishna said.
About Motorola in Malaysia
With over 30 years of corporate presence, Motorola Malaysia has established itself as a leading manufacturer of high technology wireless communications solutions and accessories for the global market. Motorola’s investments, operations and commitments in Malaysia are recognized by the Government.
Motorola is a large investor and employer in Malaysia. Penang is a major site for Motorola’s operations, as it is home to Motorola’s largest manufacturing site for two-way radio products in Asia and the only design centre for two-way radios in the region.
As of to-date, Motorola has invested a cumulative amount of over RM3.5billion in Malaysia, to focus on key activities such as human capital and R&D technology developments in producing products such as digital two-way radios, advanced wireless communications products, equipment and accessories.
Motorola is known around the world for innovation in communications. The company develops technologies, products and services that make mobile experiences possible. Our portfolio includes communications infrastructure, enterprise mobility solutions, digital set-tops, cable modems, mobile devices and Bluetooth accessories. Motorola is committed to delivering next generation communication solutions to people, businesses and governments. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.6 billion in 2007. For more information about our company, our people and our innovations, please visit http://www.motorola.com.
Satyam (NYSE: SAY), a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in 20* industries and more than 65* countries.
Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company’s 52,865* professionals excel in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.
Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve 690* clients, including 185* Fortune 500. For more information, see www.satyam.com.
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended June 30, 2008, furnished to the Securities and Exchange Commission on July 25, 2008, and the other reports filed with the Securities and Exchange Commission from time to time. These filings are available at http://www.sec.gov.
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