MindTree close to Purple Vision buy

MindTree Consulting, a Bangalore-based provider of IT and R&D services, has signed a definitive agreement to acquire 100 per cent stake in Purple Vision "" the India-based, fully-owned subsidiary of French company TES Electronic Solutions SA, which is into electronic design and manufacturing services. MindTree will acquire Purple Vision in an all-cash deal of $6.55 million.

The transaction will become effective upon completion of closing conditions in four-six weeks. The company said that the acquisition was funded through internal accruals.

Purple Vision employs 150 people, and provides differentiated services in the integrated circuit (IC) design area. Janakiraman S, president and CEO (R&D services), MindTree, said: "The acquisition will help MindTree penetrate the Japanese market further, where Purple Vision has four clients. "

Now, MindTree's IC design team will be a formidable size of 350 professionals, one of the largest independent design services organisations in India."

The domain expertise of Purple Vision will complement MindTree's existing offerings.

"It will enable us to bid for end-to-end chip design projects. Our combined strength and experience in IC designs, embedded and application software will help us offer turnkey design services to our customers globally," he added.

Last fiscal, Purple Vision's revenue was approximately $5 million. "At the close of the second quarter of the current financial year, Purple Vision's revenue was Rs 10 crore. We expect the revenue to flow into MindTree from early next quarter once the acquisition is completed," MindTree CFO Rostow Ravanan said.

Founded in 2000, Purple Vision was acquired by TES in 2005. The company has participated in over 150 silicon designs apart from providing third party services in design for testability (DFT).

Purple Vision's customers include eight of the world's top ten semiconductor companies.