| 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. |
Source: Business Standard