US-based firm to acquire Mistral Solutions

Mistral Solutions, the Bangalore-based product realisation company in the embedded space, is understood to have been acquired by a US-based multinational which offers solutions to the global defence sector. The enterprise valuation of the deal is understood to be in the range of Rs 120 crore.

Market sources indicated that the deal has been signed during the past week and an announcement is expected during the next. Mistral, a privately held firm, is understood to have a topline of closet o Rs 80 crore and net profit of Rs 10 crore. Mistral Solutions chairman Anees Ahmed could not be contacted for his comments.

This acquisition is also expected to pave the exit for venture capital funds - Nexus India Ventures and JAFCO Asia, who came in with close to Rs 30 crore during 2008.

Mistral offers professional design services which include hardware and software development, customizable product designs, systems engineering and solutions and enables an effort to reduce time-to-market for a broad range of embedded systems. The company focuses on domains including defense, aerospace, semiconductor, wireless, automotive, consumer electronics, and industrial applications.

Anees Ahmed, chairman, Mistral Solutions, had earlier told Business Standard that they are open to roping in a global strategic investor who can bring in captive business. “Quite a few global companies are in discussions with us,” he had stated. Mistral employs around 300 people and has cash in hand of Rs 25 crore.