This paper emphasizes on how the merger deal between Satyam and Tech Mahindra has been taken for inorganic growth and diversity. This paper shows how the deal was initiated and who were the main bidders? The major focus was given to the valuation of the merger and the post – merger strategy. The swap ratio has been set at 2:17, which means that Mahindra Satyam shareholders will get two shares of Tech Mahindra for every 17 shares they hold. The combined entity would be a $2.4-billion revenue firm, with about 75,000 staff and around 350 clients. The merger has resulted into a huge value addition to its stakeholders and making Tech Mahindra the 5^th largest IT Company.