Tech Mahindra, an Indian telecommunications outsourcing firm, had the winning bid of $351 billion to buy Satyam Computer Services.

Troubled Satyam, which has been embroiled in a $1 billion fraud, said Venturebay Consultants, a subsidieary controlled by Tech Mahinra, was the highest bidder.

It agreed to buy 31 percent through a share issue, offering 58 rupees a share or $1.16 a share.

Tech Mihandra, is owned by India's Mahindra & Mahindra Ltd and British Telecommunications. It had about $935 million in revenue in 2008. The firm will also make an offer on the open market to buy an additional 20 percent of Satyam.

We hope this will infuse greater confidence and comfort amongst customers, said Kiran Karnik, Satyam's chairman in a released statement.

Senior analyst for Forrester Research, Sudin Apte said, the acquisition will allow Tech Mahindra to earn about $800 million to $1 billion in annual revenues.

We estimate that over $300 million could be lost because of customer attrition over next six months, said Sudin Apte, according to the Times of India.

The purchase will help Tech Mahindra improve its software services business and better compete with rival firms, he said.