Nalanda Capital backed IT solutions provider, Mindtree is looking for possible acquisition in US and Europe worth $30 - 50 Mn to strengthen its offerings in infrastructure management and package application solutions which would aid it deepen domain capabilities in its industry verticals -banking, financial services and insurance, retail, travel and hi-tech. The acquisition would be financed through cash and cash equivalent reserves which the firm holds which is to the tune of $200 Mn.
The last acquisition of Mindtree was Sevenstrata IT Services Pvt Ltd, Chennai-based Remote Infrastructure Management Service provider.
The list of its acquisition includes;
NOIDA based ASAP Solutions (2004)
Bangalore based Linc Software Services Pvt Ltd (2005) for stock and cash
Indian division of Cosystems
TES-Purple Vision (December 2007)
Acquired majority equity interest in Aztecsoft (2008)
Bangalore based Kyocera Wireless (India) Pvt Ltd. (2009)
Mindtree venture into mobile handsets through acquisition of the research and development (R&D) centre of Kyocera Wireless was not fruitful and the company decided to exit the business in 2010.
Mindtree, mid sized firm with revenues of over $ 430 million expects higher growth in the second half of FY14 in comparison to the performance in the first half with the US economy set on the path of revival and settling down of the European economies.
Bangalore-based Mindtree, which was set up by former Wipro Ltd executives in 1999, also aims to earn $1 billion in annual revenue in five years. It ended 2012-13 with R2,361.8 Cr in and R338.9 Cr in net profit.
The company has been undergoing restructuring. In July, Mindtree moved to a different organizational structure as part of its new strategy defined by Bain, collapsing two key positions-CEO of IT business and CEO of the products and engineering business-and dividing the company into four key business segments that report directly to the Co-Fonder and CEO Krishnakumar Natarajan. Bain also suggested dedicated organization that focuses on high-quality new logo acquisition-hunting and big deals.
Recently, Infosys was also planning acquisitions in the European market to leverage offshoring as a means of cutting costs; as also Mahindra was looking for acquisition in overseas market.
The IT sector has been in news with Baring PE set to acquire 42% in Hexaware Technologies for about $400 Mn which is currently held by promoter Atul Nishar family and PE investors - Dali (investment vehicle of Chrys Capital) and General Atlantic Partners.
Kohlberg Kravis Roberts and Co led consortium is planning to invest R600 Cr in Chennai-based Apollo Hospitals, ET states. The proposed deal provides an opportunity to partner with the Reddy family for the growth of the healthcare business.
Making its mark in India by its first investment in Dovetail way back in 1994, it has been one of the mostactive VCs in the past 7 years after merging with Mitra's earlier fund Erasmic Venture in 2008. The firm went on to raise about $60 Million that year.