Mid-size IT services firm Mindtree Ltd has received its board approval to acquire couple of IT companies based in the US and the UK separately for $76 million (Rs 482 crore) in staggered transactions.
Mindtree will acquire UK-based Bluefin in an all-cash transaction for £42.3 million ($66.13 million) and will make an upfront payment of £34 million ($53.2 million) and the remaining £8.3 million ($12.97 million) will be paid in the next three years.
Bluefin delivers business consulting, technology strategy, implementation in SAP, analytics, digital, mobile, web, cloud and SAP HANA.
The acquisition will help Mindtree increase its ability to help SAP clients digitise the value chain, ensuring there is harmony between the front-end customer experience and back-end systems as businesses transition to fully digital organisations.
Krishnakumar Natarajan, CEO and MD of Mindtree, said, "The acquisition will strengthen our position to offer the full spectrum of SAP services. Bluefin's focus on SAP HANA and their expertise across the SAP portfolio create the scale to deliver transformational services while driving greater efficiency and operational effectiveness."
US-based Relational Solutions, an IT solutions company specialising in technology services to the consumer goods industry, will be acquired in an all-cash transaction for $10 million. The consideration includes an upfront payment of $7 million and earn out of $3 million payable over the next two years.
Founded in 1996, North Olmsted, Ohio-headquartered Relational Solutions provides analytics with solutions for supply chain optimisation and trade promotions analytics.
"Our intellectual property in areas like demand signal technology and trade promotions meshes well with Mindtree's market-leading IP in areas like assortment and supply chain planning and predictive analytics. Together our skills and technology will deliver incredible value to CPG clients," said Rob York, president of Rational Solutions.
The deal will make Mindtree's offering strong for CPG companies.
"CPG clients are seeking to use advanced analytics to improve ROI on trade spends, improve on-shelf availability and correct merchandising voids. With this acquisition, we see opportunities to deliver improved value using predictive analytics capabilities in these areas and further enhance the digital transformation journey of our clients," said, Radha R, EVP and head of digital business, Mindtree.
The company has partnership with several technology providers including hardware, software and online services. These include HP, Cisco, D-Link and McAfee.
BMR Advisors acted as the sole financial advisor on this deal from Mindtree's side.
Bangalore-based Mindtree had earlier this year acquired US-based insurance IT solutions provider Discoverture for $15 million.
The firm that counts Nalanda Capital, Global Technology Ventures and V G Siddhartha-led Café Coffee Day Group as its shareholders had struck a little over a dozen acquisitions over the past decade. It was, however, quiet in terms of inorganic growth since 2010. The three deals this year seem to mark a change in its strategy. The company has also been aiming to incubate startups in new generation tech field.