Satyam has acquired Motorola’s software development centre in Malaysia for an undisclosed amount. The deal will bring human capital into Satyam’s fold besides a running contract with the US telecom giant. The centre which employs 128 people at Kuala Lumpur is part of Motorola’s Home and Networks Mobility business focusing on network management system development.
The deal is expected to be complete by the end of this calendar year post mandatory regulatory nod. Post the transaction Motorola will contract directly with Satyam for development services for its network management software.
“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 in a public statement.
For Motorola the transaction represents a move to divest non core business. The telecom giant posted a loss of $397 million in Q3 with sagging handset sales.
The poor financial performance also has led to a decision to delay plans for hiving off the handsets unit and an announcement to lay off 3,000 employees globally of which 2,000 will be laid off from the mobile devices division. Motorola currently has 66,000 employees.