MindTree Announces Takeover of Kyocera Wireless India

IT solutions company MindTree Ltd. has reportedly signed an agreement with Kyocera Wireless (News - Alert) Corp. (KWC) to acquire Kyocera Wireless (India) Pvt. Ltd., its Indian subsidiary.

MindTree will make an upfront payment of approximately $6 Million, and further payments linked to revenues in financial years 2010-11 and 2011-12. Officials at MindTree said the acquisition is subject to legal and statutory requirements, as well as certain closing conditions.

MindTree expects this acquisition to contribute approximately $9 Million in revenues for the period October 2009 to March 2010, with Profit after Tax expected to be in the range of 13-15 percent.

Janakiraman S, president and Group-CEO, Product Engineering Services at MindTree said the company established a global leadership position in technologies such as short-range wireless and multimedia codecs that are integral to wireless communication devices.

“With the acquisition of Kyocera Wireless (India) Pvt. Ltd. we will be able to further strengthen our leadership position by offering end-to-end design and technology services to wireless Original Equipment Manufacturers and service providers,” he said.

 

Officials with the company said Kyocera Wireless will continue to provide engineering services to San Diego-based KWC and other Kyocera entities on a contract basis after the sale.

 

“We are pleased to enter into this agreement with MindTree," said Yasuyuki Yamamoto, general manager of Kyocera Corporation's Corporate Communication Equipment Group.

 

He said the new deal will allow the company to improve its cost structure and competitiveness while providing MindTree a strong engineering resource, especially in the field of software for mobile devices.