The Hindu Business Line : Mindteck buys Infotech of US

Bangalore, Feb. 6 Mindteck (India) Ltd, a global technology and IT services company, today announced the acquisition of a Pennsylvania-based Infotech Consulting for a combination of cash and share swap.

Mindteck paid $1.5 million in cash and issued additional stock for the acquisition of Infotech Consulting at a premium of Rs 88.50.

At a press conference here on Wednesday, Mr Pankaj Agarwal, Mindteck Group Chief Executive Officer, said this was the first of four acquisitions his company had planned for the year. Mindteck had raised $7.28 million through private equity for its buying companies, as part of its ‘Go Global’ strategy.

He said Infotech acquisition value was $21 million, while its revenue $31 million.

Mr Agarwal said Mindteck would be buying another company in the US, while two more will be from the UK and Singapore.

Stating that a total of $30.6 million will be invested on the four acquisitions, including Infotech during the current financial year, Mr Agarwal said the consolidated revenue of Mindteck and its four acquisitions was estimated to grow to $75 million. Mindteck current revenue stood at $27 million with a profit margin of 3.5 per cent.

‘go global’ strategy

As part of ‘Go Global’ strategy, Mindteck would hoped to complete its acquisitions by the fourth quarter of FY 07-08.

It also planned to expand its footprint in Europe to de-risk from the US dependence, he said adding Mindteck has reduced its dependence on the US market by 10 per cent to 85 per cent.

It will be opening its offices in Germany and the Netherlands to expand its business into Europe.

More Stories on : Mergers & Acquisitions | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Subex bags deal from Slovenia co

Bharti signs pact for new under-sea cable

Bharti’s tower business draws more suitors

Indian arm fastest growing for SAP

Maveric Systems to invest $3-4 million more

Salary cut: HR fraternity unperturbed

Mindteck buys Infotech of US

MindTree office in Dubai

Staff performance, productivity matter: TCS

AMD sets up computer learning lab for girl students

Kohlberg Kravis buys 2% stake in Bharti Infratel for $250 m

SatNav’s One India map