Mahindra Satyam Thursday said it is in talks to buy an aerospace engineering company in Europe, the news reports said.
The acquisition is a part of the larger plan by the company to improve its offerings in the engineering services, and in the healthcare and financial services verticals.
The IT services provider is likely to finalize the transaction in a few months, said the two senior company officials, without divulging more details at present.
Around 4,500 employees provide engineering services of which 1,000 specialise in the aerospace engineering.
The buy of aerospace acquisition will also help the company to strengthen its foothold in aeronautics. The engineering services division of IT companies helps aircraft manufacturers design the aircraft using embedded software systems which ensures a high degree of accuracy.
The software industry grouping Nasscom estimates the annual business potential from the engineering services at $4 billion.
The company official said, “We intend to complete 2 acquisitions by the end of the year. We would also be looking at BPO businesses.” He also said, "The leaders from various business units have been asked to submit proposals so that management can evaluate them."
Mahindra Satyam is a part of the U.S. $15.4 billion Mahindra Group, a global industrial federation of companies and one of the top 10 business houses based in India. Its development delivery centers in the U.S., Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia and Australia serve many clients including Fortune 500 companies.