IGATE sold off domestic IMS biz before buyout by Capgemini
New Delhi, Jun 2: Days before IGATE was acquired by French IT giant Capgemini, the US-based firm sold off its domestic infrastructure management services (IMS) operations to India's MindSquare Technologies for about USD 5 million.
MindSquare Technologies is a group company of Mumbai-based 1neoteric Technology Solutions.
Under the agreement, MindSquare has acquired the entire Indian customer base of IGATE, along with its over 400 employees that provide remote and onsite IMS services to Indian customers of the US-based firm.
"Apart from the capability of offering end-to-end customer solutions, the deal has also helped us bring on board marque customers," Neoteric Technology Solutions Head Anup Nair told PTI.
These customers include Reliance Industries, Reliance Infrastructure, Reliance Communications, Castrol India, Anand Bazar Patrika, BITS Pilani and British Council. IGATE did not respond to e-mailed queries.
Though Nair declined to comment on the deal size, sources said the deal is estimated to be worth about USD 5 million financed through internal accruals. Merisis Advisors advised Neoteric on the acquisition.
On April 27, Capgemini said it will buy Nasdaq-listed IGATE for USD 4.04 billion (Rs 25,000 crore) in cash. Interestingly, IGATE had bought India's Patni Computer Systems in 2011 in partnership with private equity giant Apax Partners in a USD 1.2 billion deal.
Set up in 2012 by industry veterans Balakumar Vijayendran, Sanjay Nayak and Vaishali Bansal, MindSquare offers a range of managed infrastructure services.
Earlier this year, it received a strategic investment from 1neoteric and became part of the 1neoteric Group.