Satyam Computer Services Ltd. (NYSE:SAY), a leading business and information technology services provider, today announced that it has entered into a definitive agreement to acquire Bridge Strategy Group, a Chicago, Ill.-based management consulting firm.
In making the $35 million, all-cash purchase, Satyam significantly reinforces its strategy consulting and business transformation capabilities.
"Bridge Strategy Group is a highly respected organization that is well known for its exceptional professionals and its acumen in seven key industries," said Satyam Founder & Chairman, B. Ramalinga Raju. "By absorbing the company, we gain an immediate influx of 36 brilliant and experienced strategy consultants, most of whom are alumni of the world's best strategy consulting firms and business schools. We also significantly bolster our ability to provide the entire spectrum of services to global customers. At the same time, Bridge Group clients gain access to Satyam's world-class business process and technology skills and global resources."
Bridge Strategy, which was founded in 1998, earned $17 million in revenue last fiscal year. It develops profitable growth, operations design, performance improvement, and execution strategies for clients of varying size. It also boasts a strong thought leadership focus, and is committed to helping its clients "rapidly improve their business performance."
Numerous factors make the acquisition ideal for Satyam, Raju said. The organization's strategy, when purchasing other companies, is to:
- Add higher value service offerings
- Bridge competency gaps
- Enhance leadership capabilities
- Add sound and significant customer relationships
- Strengthen the brand
"Bridge Strategy does all of the above," he said. "With its experts as part of our team, Satyam will deliver superior, end-to-end transformational solutions with even greater speed and efficiency. As we deepen our relationships with longstanding customers, they expect us to provide highly strategic counsel. We are now more able to accommodate that demand."
For their part, Bridge Strategy professionals look forward to helping their new colleagues create more complete solutions for global clients.
"The strategic business problems Bridge Strategy clients face frequently call for complex business process and technology solutions, which makes this merger a natural fit," said Bridge Strategy President and Senior Partner Stephen E. Sheridan. "We are pleased to add our skills to Satyam's broad range of capabilities, and to help the company strengthen its place at the forefront of the professional services industry."
While Bridge Strategy will continue to serve clients in the US, Satyam's largest and most mature market, its services will be made available to Satyam clients worldwide via Satyam's advanced global delivery model.
Sheridan, the current president of Bridge Strategy, will assume the role of CEO for the unit after the acquisition, and will report to Satyam Co-founder & CEO, Rama Raju, who will also serve as chairman of Bridge Strategy Group. All current partners and staff are expected to remain with the unit.
For the foreseeable future, Bridge Strategy will operate as a fully owned subsidiary of Satyam, and maintain its name and brand. Plans to seamlessly integrate the firm into Satyam's global network of capabilities are under way, and initially focus on defining go-to-market strategies and value proposition and competency development.