Mindtree scouts for acquisitions to beef up services portfolio

Mid-sized IT firm Mindtree is scouting for "strategic" acquisitions this year in the package applications and infrastructure management space to strengthen its services portfolio.
"We are active. In 2014, we have a larger focus on acquisitions that are strategic, in the sense that they add value to our service offerings," Mindtree CEO and Managing Director Krishnakumar Natarajan told reporters here.
On the areas of interest, he added that the company's focus is on package applications and infrastructure management.
Although he did not state the deal size that the company is looking at, Natarajan said Mindtree would not be going for big acquisitions.

"The areas that I mentioned, the deals range from USD 15-20 million to USD 100 million," he added.
Mindtree, aiming to enter the billion dollar revenue club by 2017, is looking at using these acquisitions to offer "differentiated experience" and added value to the clients, Natarajan said.

Asked if Mindtree would be able to meet the target, Natarajan said the company was more focussed on delivering value to customers.
"It does not matter if the target is achieved in 2018 instead of 2017. What matters to us is whether our clients are happy with us and whether our service offerings drive value for them or not," he said.

Going forward, the firm will focus on BFSI, CPG & retail, manufacturing, travel, transport & media and hi-tech segments, he said, adding that Mindtree will pursue clients with revenues of over USD 1 billion and Fortune 1,000 companies.
Mindtree had 208 active clients at the end of the October-December quarter.
"In the 2014-15 fiscal, to chart the future growth of Mindtree, our priorities are to strengthen our domain expertise, focus on account management, expand our global delivery centres and enhance our large deal capabilities," Natarajan said.
The Bangalore-based firm reported 10.4 per cent fall in consolidated net profit at Rs 88.5 crore for the third quarter ended December 31, 2013-14 fiscal, as against net profit of Rs 98.8 crore in the year-ago period on account of forex losses.

Consolidated revenues of the company, however, rose by 34 per cent to Rs 790.6 crore in Q3, from Rs 590.1 crore in the same quarter of 2012-13 fiscal.