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Shamik Paul

Bangalore, Sept. 26 Technology and IT services provider Mindteck India Ltd, which acquired four companies earlier this year, said a significant part of its growth would be inorganic, and the company remains opportunistic in pursuing new buyouts.

About 15 per cent to 20 per cent of Mindteck’s growth would be through acquisitions, said Mr Shankar Velayudhan, Executive Vice President and Head of India and Europe Operations. However. he did not disclose a time frame for this.

The company plans to buy every alternate year, mostly in Europe and Latin American. “The intervening year would be spent in integrating and consolidating,” he added.

Mr Velayudhan said if other factors can be balanced out, this is a good time for buys as valuations are manageable now because of the negative economic environment.

He said there are some venture capital-funded companies in Europe between $3 million and $15 million that could be interesting. The venture capitalists are now looking to exit these companies. However, Mindteck is not ready yet to buy, he added.

On being asked about the effects of the financial meltdown in the US on Mindteck, he said as of now there has not been any direct effect on the company as it has little exposure to the financial sector.

A large percentage of Mindteck’s revenue comes from the government in the US. This is largely because of the acquisition of Infotech Consulting, which did a lot of work for the government agencies, said Mr Velayudhan.

Mindteck acquired Infotech Consulting in February 2008 for $21 million. In April, it acquired Primetech Solutions Inc, Mindteck UK Ltd and Mindteck Singapore Pte Ltd for $9.6 million.

However, Mr Velayudhan said if the financial crisis deteriorates any further, there could be a trickle-down effect and Mindteck’s clients could start cutting back on projects.

More Stories on : Mergers & Acquisitions | Software

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