Business Daily from THE HINDU group of publications
Wednesday, Sep 30, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Wednesday, Sep 30, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Markets
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Stocks Info-Tech - Mergers & Acquisitions BL Research Bureau MindTree has once again taken the inorganic route towards expansion of capabilities and service offerings by acquiring Kyocera Wireless (India), after acquiring Aztecsoft last year. Kyocera Wireless’ acquisition indicates MindTree’s continuing focus on enhancing its product engineering services, especially product testing services. Product engineering services, a combination of R&D services and software product engineering, contribute over 43 per cent of MindTree’s revenues. The acquisition is expected to enhance this part of its business portfolio. After the acquisition Kyocera, it would continue to provide services to the US-based KWC on a contract basis. This enhances the client portfolio for MindTree. The deal involves an upfront payment of $6 million by MindTree, while subsequent payments will be based on revenues that can be generated in FY10 and FY11. MindTree hopes to generate $9 million from this acquisition for the six-month period October 2009-March 2010. The margins of Kyocera, at 13-15 per cent, are broadly in line with MindTree’s. With over Rs 37 crore in cash and bank balances and over Rs 29 crore in mutual fund investments as of June this year, the acquisition could comfortably be funded by MindTree through its internal accruals. More Stories on : Stocks | Mergers & Acquisitions | Software
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