Bangalore, Feb 6: Mindteck, a global technology and IT solutions provider, has acquired US based Infotech Consulting, a multi-disciplined technology services firm, Mindtech CEO Pankaj Agarwal said today.
Addressing newspersons here, he said that the acquisition of Infotech Consulting, which has a large commercial and governmental customer base and significant expertise in business application consulting was completed for USD 21 million. He said the acquisition, first in the series of four planned by end of March 2008 would set Mindteck's 'Go Global' growth strategy in motion. The Infotech Consulting which has estimated revenue of USD 31 million, employs over 250 people and would help Mindteck to further solidify its market position.
"On a stand-alone basis, FYE March 2008, consolidated revenue of Mindteck and its four acquisitions was estimated to be over USD 75 million" he added. Mr Agarwal said that Mindteck raised USD 7.23 million through private equity for implementation of its 'Go Global' strategy and to clear some debt and fund current acquisitions and future growth.
Mindteck has issued its shares to new private equity investors at a value of Rs 73.54 per share, a premium of Rs 52.54 per share apart from issueing an additional stock for acquisition of Inforech Consulting at Rs 98.50 per share, on a stock swap basis, he added.
Elaborating the company's 'Go Global 'Strategy' Mr Agarwal said that it includes building a multicultural global organization by strengthening Mindteck business in the US and Expanding operations in Europe and Asia. It also envisaged to acquire new clients and add new service offerings in high growth areas. The expansion plans also vetoed with to reduce dependency on US business by spreading its wings in Europe and Far East, and mitigate the risk of slow down in the US economy and USD depreciation.
Once completion of the acquisition of all the four companies by March this year, Mindteck's business volume with US will come down from the present 95 per cent to 85 per cent, Mr Agarwal said.
Establishment of operations in Netherlands and Germany, opening of new offices in South Carolina and exploring acquisition of a firm in China were also on the card. The company has its operations presently at India, Singapore, USA, Malasya, UK and Baharin.