MindTree to acquire Kyocera Wireless India

IT solutions firm MindTree today announced it has entered into an agreement with San Diego-based mobile handset maker Kyocera Wireless Corporation (KWC) for acquiring its Indian subsidiary based in Bangalore.

Under the agreement, MindTree will make an upfront payment of about $6 million and further payments would be linked to revenues in financial years 2010-11 and 2011-12, MindTree said in a statement.

MindTree expects this acquisition to contribute about $9 million in revenues between October 2009 and March 2010, with profit after tax expected to be in the range of 13-15 per cent, it added.

The acquisition of Kyocera Wireless India (KWI) is subject to legal and statutory requirements as well as certain closing conditions.

"Wireless technologies form a critical element in this space. The acquisition, and our relationship with Kyocera, will fuel MindTree's growth in the global PES market," MindTree CEO and Managing Director Krishnakumar Natarajan said.

KWI, with a headcount of about 600 people, is engaged in wireless product development, software engineering, and product testing for KWC's global product portfolio, as well as development of custom wireless handsets for Indian service providers.

"With the acquisition of KWI, we will be able to further strengthen our leadership position by offering end-to-end design and technology services to wireless Original Equipment Manufacturers and service providers," MindTree President and Group-CEO (Product Engineering Services) Janakiraman S said.

KWI will continue to provide engineering services to San Diego-based KWC and other Kyocera entities on a contract basis after the sale, the statement said.

"We are pleased to enter into this agreement with MindTree. This allows Kyocera to improve its cost structure and competitiveness while providing MindTree a strong engineering resource, especially in the field of software for mobile devices," KWC General Manager (Corporate Communication Equipment Group) Yasuyuki Yamamoto said.