Satyam Infoway to Buy IndiaWorld
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In a major play for the Indian portal market, Satyam Infoway Ltd. Monday inked an agreement to buy IndiaWorld Communications Private Ltd. for Rs. 4.9 billion (US$115 million).
The two-step purchase intends to meld the Web site network of IndiaWorld with the Satyam Online portal and e-commerce services.
The two companies also expect an overlap between Satyam's (SIFY) targeted subcontinent audience with IndiaWorld's non-resident Indian or expatriate demographic.
Satyam Infoway has purchased 24.5 percent of IndiaWorld's shares at a cost of Rs 1.2 billion (US$28 million), and has a $12 million option of buying the remaining 75.5 percent by June 30 of next year for Rs. 3.7 billion (US$87 million).
Satyam last month became the first Indian ISP to list on the Nasdaq, and has set its sights on acquisitions and the development of an international gateway as its primary post-IPO goals.