MindTree scouts for buys in banking, analog design space
Bangalore-based MindTree Consulting is scouting for acquisitions in the banking, analog design and DFT (Design For Testability) space.
By Shelley Singh, TNN |
NEW DELHI: Bangalore-based MindTree Consulting is scouting for acquisitions in the banking, analog design and DFT (Design For Testability) space. The company has identified acquisition targets in India and outside and the size of the acquisition could range between $3-5 million on the lower side and $30-40 million on the higher side.
The $130 million (2006-07 revenues) IT and R&D services provider has also expanded operations outside Bangalore to Chennai and plans to set up a centre in Bhubaneshwar as well. At Chennai, MindTree Consulting already has a 300 people incubation centre. The Chennai facility will eventually have about 2,500 employees. At present, the total headcount of the company is 4,800.
When asked about the acquisitions MindTree Consulting president & CEO (R&D services) S Janakiraman told ET: “We have raised about $50 million and the acquisitions will be in the niche and focused areas that we have identified.
On the semiconductor design side, we want to build end-to-end and complex design capabilities and acquisition in this area will help us achieve the goal. In the BFSI space, we have strength in insurance vertical and an acquisition will help us strengthen our banking and financial services capabilities as well.”
For 2007-08, the company expects revenues to be about $180 million. On the impact of the stronger rupee against the dollar, Mr Janakiraman said: “We do see an impact of 2-2.5% on profits due to the strengthening rupee. We are re-negotiating contracts and new contracts are being signed at higher rates.’’
MindTree does not face the risk of being impacted by the subprime crisis as its BFSI practice is very new — started about seven months back— and they don’t have too many clients in the area, he added.
The R&D services business contributes 24% and IT services bring in 76% of MindTree’s revenues. In IT services the company focuses on manufacturing, travel & leisure and BFSI verticals. While on the R&D services it focuses on chip design and system design R&D for communication, storage and consumer appliances industries.
The $130 million (2006-07 revenues) IT and R&D services provider has also expanded operations outside Bangalore to Chennai and plans to set up a centre in Bhubaneshwar as well. At Chennai, MindTree Consulting already has a 300 people incubation centre. The Chennai facility will eventually have about 2,500 employees. At present, the total headcount of the company is 4,800.
When asked about the acquisitions MindTree Consulting president & CEO (R&D services) S Janakiraman told ET: “We have raised about $50 million and the acquisitions will be in the niche and focused areas that we have identified.
On the semiconductor design side, we want to build end-to-end and complex design capabilities and acquisition in this area will help us achieve the goal. In the BFSI space, we have strength in insurance vertical and an acquisition will help us strengthen our banking and financial services capabilities as well.”
For 2007-08, the company expects revenues to be about $180 million. On the impact of the stronger rupee against the dollar, Mr Janakiraman said: “We do see an impact of 2-2.5% on profits due to the strengthening rupee. We are re-negotiating contracts and new contracts are being signed at higher rates.’’
MindTree does not face the risk of being impacted by the subprime crisis as its BFSI practice is very new — started about seven months back— and they don’t have too many clients in the area, he added.
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The R&D services business contributes 24% and IT services bring in 76% of MindTree’s revenues. In IT services the company focuses on manufacturing, travel & leisure and BFSI verticals. While on the R&D services it focuses on chip design and system design R&D for communication, storage and consumer appliances industries.
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