TMT
By 22 March, 2010

Walden International and Nalanda Capital backed software services firm MindTree is merging a wholly owned subsidiary MindTree Wireless Private Limited (formerly Kyocera Wireless (India) Private Limited) with itself for better operational efficiency.

MindTree Wireless was established as a subsidiary of Kyocera Wireless Corp in August 2003 and currently employs more than 600 people, with its development centre located in Bangalore.

MindTree had acquired Kyocera Wireless last year for an upfront payment of about $6 million (about Rs 29 crore), besides other payments linked to revenues for the next two years. The acquired company is said to have annualised revenues of around $20 million and is a profit making entity.

The company provides wireless product development, software engineering and product testing services for mobile handsets and wireless products firm California-headquartered Kyocera’s global product portfolio, other than developing customised wireless handsets for Indian telecom service providers. The deal will give a strong footing to MindTree in the product engineering services space, one of its key focus areas.

As per valuation report prepared by Parimal Ram & Pattabhi, the fair value of shares of Mindtree Wireless is pegged at Rs 3,303.6 a share. MindTree currently owns 4.125 million shares of MindTree Wireless that would give it a valuation of Rs 1,362 crore(~ $300 million). MindTree, a public company, has a market cap of Rs 2,244 crore(~$495 million). MindTree has over the recent past also acquired a majority stake in Aztecsoft.

 

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