Mindtree acquires US-based firm Magnet 360 for $50 million

Our Bureau Bengaluru | Updated on January 19, 2018 Published on January 18, 2016

Posts 7% rise in Q3 net profit; rejigs top management

Mindtree has acquired Magnet 360, a US-based Salesforce consulting partner, for $50 million in an all cash deal. The company has Honeywell, Nike, Cargill among its clients. The deal, expected to close in the next two months, will see about 150 people joining Mindtree.

With this acquisition, Mindtree is looking to up its play in the fast growing cloud computing services area.

Meanwhile, Mindtree on Monday reported a 7.2 per cent rise in net profit for the December quarter, driven by growth across all its segments, made an acquisition in the cloud computing space and also announced a reshuffle in its top management, as it seeks to build differentiation in some of its business offerings.

Profits for the quarter stood at ₹150.9 crore compared with ₹140.8 crore in the same period last year.

Further, as a part of the reshuffle, Krishnakumar Natarajan was elevated to the Executive Chairman position, as co-founder Subroto Bagchi stepped down. The new CEO of the company will be Rostow Ravanan, who was the former CFO of the company. Bagchi will continue to be an independent director in the company.

For the December quarter, Mindtree's clocked revenues of ₹1,214 crore, a 33.2 per cent increase compared with ₹911.7 crore in the same period last year.

Mindtree also cheered investors and will issue bonus shares in the ratio of 1:1 (one additional equity share for every existing equity share), which is the second such issue in the last couple of years. It has also recommended an interim dividend of ₹4 per equity share of par value ₹10 each. Growth in quarter was driven by Retail, CPG and Manufacturing, which accounted for ₹247.3 crore, BFSI and Technology, Media and Services contributed ₹305 crore and ₹367.1 crore and Travel & Hospitality segment accounted for ₹105.3 crore.

Talking about the performance, Natarajan said the company saw good revenue growth in and the broad-based result reflects its ongoing momentum of our key focus areas such as Digital and Managed Services.

In dollar terms, Mindtree reported a 0.2 per cent growth in net profit at $22.8 million and 24.8 per cent rise in revenue to $184.4 million.

Published on January 18, 2016
This article is closed for comments.
Please Email the Editor