MindTree buys Kyocera Wireless India

MUMBAI Tue Sep 29, 2009 1:29pm IST

Related Topics

MUMBAI (Reuters) - MindTree Ltd said on Tuesday it agreed to buy Bangalore-based Kyocera Wireless India Pvt Ltd and make an upfront payment of $6 million, while further payments will be linked to revenue in FY11 and FY12.

The IT firm expects the acquisition to contribute about $9 million in revenues for the period Oct 2009 to March 2010, with profit after tax expected to be in the range of 13-15 percent, it said in a statement.

"This acquisition makes them (Kyocera) a major strategic client for MindTree," Janakiraman S., MindTree president and group chief executive, product engineering services, said in a statement.

The deal will help fuel growth of MindTree's product engineering services business under which it offers design and technology services including wireless technology, MindTree said.

"This allows Kyocera to improve its cost structure and competitiveness while providing MindTree a strong engineering resource," said Yasuyuki Yamamoto, general manager, Kyocera Corp.

Kyocera Wireless India is a unit of San-Diego based Kyocera Wireless Corp, employs 600 people, and develops custom wireless handsets for Indian service providers.

At 12:51 p.m., MindTree shares were trading up 4.79 percent at 623.35 rupees, in a Mumbai market that was up 0.89 percent.

(Reporting by Aniruddha Basu and Ketan Bondre; editing by Sunil Nair)

(For more news on Reuters Money click www.reutersmoney.in)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage