Global IT services company Mahindra Satyam would acquire a strategic stake in Dion Global Solutions, provider of software products and solutions for capital markets globally.

The acquisition would aid the company, which is back on the growth path following the financial irregularities, in increasing its coverage of capital markets.

The two companies have already signed a memorandum of understanding (MOU) to this effect. Mahindra Satyam has agreed to acquire over 15 per cent stake by the way of fresh issue of equity shares. The new equity shares will be priced in accordance with the applicable Sebi regulations.

The transaction would be subject to regulatory and board approvals and satisfaction of other customary closing conditions.

Dion is promoted by Malvinder Mohan Singh and Sunil Godhwani.

“We are impressed by Dion’s products and solutions and its ability to truly partner with its clients. We are convinced that Dion will become one of the foremost software solutions providers to capital markets globally and are keen on participating in Dion’s promising future,” said CP Gurnani, chief executive officer of Mahindra Satyam, in a statement.

Dion has a portfolio of solutions and services for global capital markets covering portfolio management, trading, settlement, risk management, analytics, treasury and research services. The firm services more than 660 clients in 62 countries. Satyam will now have access to these.

Dion will use the proceeds to further enhance its offerings and also its geographic reach. It has offices across 14 countries and product innovation centre in Noida, and had over 450 employees as of March last year. The company reported 128.8 crore revenues and Rs 16.6 crore net loss for the financial year.

Ralph J Horne, managing director and global chief executive officer of Dion said, having Mahindra Satyam as a strategic investor would help it to combine skills from both companies and this develop new business solutions for all tiers of the financial services industry, including many common clients.

This alliance with Satyam would help in expanding the solutions capabilities and also make inroads to newer markets, he added.

krishnamohan

@mydigitalfc.com