MindTree to acquire Kyocera Wireless India
Bangalore-based software firm, MindTree Limited has finally agreed to acquire Bangalore-based Kyocera Wireless India Pvt. Ltd.
Under the arrangement, MindTree will make an upfront payment of approximately $6 million for the acquisition. Further payments will be linked to Kyocera Wireless' revenues in financial years 2010-11 and 2011-12.
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.
Kyocera Wireless India is a unit of San-Diego based Kyocera Wireless Corp, which engaged in wireless product development, software engineering and product testing. The company employs 600 people, and develops custom wireless handsets for Indian service providers.
Market experts believes that the deal will help fuel growth of MindTree's product engineering services business under which it offers design and technology services including wireless technology.