Mindteck acquires US firm for $21 million

Mindteck India, a Bangalore-based publicly listed IT outsourcing firm, has acquired US-based Infotech Consulting for $21 million.

Mindteck is paying cash of $1.5 million while the rest is in stock. Mindteck has issued stock for this acquisition at Rs 98.50 per share, a premium of Rs 88.50 per share on a stock swap basis on a base price of Rs 58 per share.

Infotech Consulting founder Pankaj Agarwal is the current CEO of Mindteck. Infotech Consulting topline is $31 million and brings in 250 people to Mindteck along with presence in Business Application Consulting, infrastructure and managed services.

According to Mindteck, it will acquire three more companies within the end of the current fiscal for a total of $30.6 million including the $21 million it paid out for Infotech.

Mindteck currently has revenues of $21.1 million and with these acquisitions is looking at a topline of $75 million by end of the current fiscal. The combined business will employ 1,000 people.

Said Agarwal: "The new, larger Mindteck will continue to build upon the $75 million revenue base. We are poised for steady organic growth and we will accelerate with strategic acquisitions in the coming quarters."

Mindteck said it recently raised $7.2 million through the private equity route to retire some debt and fund current acquisitions and future growth.

Mindteck was initially incubated by Bahrain-based Taib Bank. Currently, the firm is managed by a group of HNIs from US and Europe and are estimated to hold 75 per cent in the company.