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After rebranding Satyam Computers to Mahindra Satyam, Tech Mahindra its new owners are planning to merge Mahindra Satyam into its own system as part of an effort to promote greater synergies between the two companies.

Satyam Computers, once the country’s 4th largest IT firm will now merge with Tech Mahindra, India’s 6th largest IT firm to give a boost to their combined strengths.

Both firms are likely to have a common governance board to start with and Mr Nayyar will oversee the governance and integrated functioning of the two firms.

“Yes, the two companies will merge and not only because its logical, there are a lot of synergies between us. I can’t give a date on when it’ll happen, but I can say it could be in the forseeable future,” said Vineet Nayyar, who has been elevated to the position of executive vice-chairman of Mahindra Satyam.

Both Mahindra Satyam and Tech Mahindra will exist under the Mahindra group umbrella, but will act as one entity.

With most of their services being in complementary areas, the group does not expect many challenges for them to act together. TechM is focussed on offering services to the telecom industry and Mahindra Satyam has broad capabilities across a number of industries, including financial services and manufacturing. TechM is taking shareholder approval to make a QIP of 1.36 crore shares.

Depending on the market conditions, the company will decide on the timing of the issue, Mr Nayyar said. The funds will be used to retire the debt TechM has taken to finance the Satyam acquisition.