Mahindra Satyam will acquire a minority stake in Dion Global Solutions,a specialist provider of software products and solutions for capital market.
In a joint statement,the companies today said that they have signed a Memorandum of Understanding and Mahindra Satyam has agreed to acquire a significant minority stake by way of fresh issue of equity shares.
The new equity shares will be priced at in accordance with the applicable SEBI regulations,they said without revealing the actual deal size.
Dion Global is promoted by Malvinder Mohan Singh and Sunil Godhwani.
On the possible deal,Mahindra Satyam CEO C P Gurnani said,”We are extremely impressed by Dion¿s products and solutions,its ability to truly partner with its clients,and most of all,its top-class management team.”
“… Dion will become one of the foremost software solutions providers to capital markets globally and are keen on participating in Dion’s promising future,” Gurnani added.
The transaction will be subject to regulatory and board approvals and satisfaction of other customary closing conditions,the statement said.
Ralph J Horne,Managing Director and Global CEO of Dion said,”This alliance will help us further expand our solutions capabilities and make inroads to newer markets.”
Dion has a portfolio of cutting-edge solutions and services for global capital markets with than 660 clients in 62 countries.
The proceeds from the investment under consideration will be utilised by Dion to further enhance its offerings and its geographic reach,the statement said.
As on December 31,2011,promoters of Dion are holding 63.9 per cent stake while the rest is with public.
Shares of Mahindra Satyam (Satyam Computer Services) were quoted marginally down at Rs 71.80,while Dion was trading higher by 4.85 per cent at Rs 33.50 on the BSE at 1310 hrs.