India-based Satyam Computers has reached a deal to buy the market research and customer analytics operation of Caterpillar’s market research and customer analytics (MR & CA) arm for $60 million. As part of the agreement, Satyam will create a business unit in Chennai to provide MR & CA solutions to Caterpillar and its other customers in various industries.
The acquisition will strengthen Satyam’s relationship with Caterpillar by segmentation, promotions, forecasting, new product development, services, validation and customer survey-execution among other areas. “The MR&CA, IP and assets will complement Satyam’s business-consulting capabilities, market-research process and will establish us at the forefront of the substantial knowledge process outsourcing (KPO) market,” said B. Ramalinga Raju, Chairman, Satyam. The global KPO market will reach $17 billion by 2010, according to consulting firm KPMG.
The software giant has also bought a Belgian company, S&V Management Consultants, for $35.5 million in an all-cash deal. The purchase will significantly reinforce Satyam’s supply chain strategy capabilities, with 60 highly skilled consultants joining the group. However, S&V will maintain its name and brand for the near future but will become a part of Satyam’s Consulting and Enterprise Solutions team. With offices in Belgium and the Netherlands, the $15m firm develops supply chain solutions, largely for manufacturing and pharmaceutical companies and public entities.
Satyam earlier reported an 18.5 percent rise in its quarterly profit to $117 million, lagging forecasts, as a slowdown in the U.S. crimped outsourcing deals.
