MindTree buys Kyocera Wireless India
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)
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