MindTree eyes chip design co for third buy

BANGALORE: Mindtree Consulting, the Bangalore-headquartered mid-tier IT services company, is all set to make its third acquisition. The target is most likely to be that of a semiconductor IC design company as it has already signed a non-binding term-sheet agreement with them. MindTree has already carried out two acquisitions - ASAP in September 2004 and Linc Software in June 2005.

Addressing mediapersons here on Saturday, MindTree CMD Ashok Soota said the company would constantly look at acquisitions which brings in complementary capability and entry into new geographies.

The latest planned acquisition is of a company based in India and no further details were made available. Mr Soota said the company has expanded its service offerings to address a larger part of the market with the latest introduction being infrastructure management and technology support.

In terms of verticals, it is looking at increasing the number from the current level of four. MindTree, which is hitting the capital market with its initial public offering (IPO) soon, reported revenues of Rs 455.37 crore for FY06, recording a year-on-year growth of 81%. The net profit for FY06 stood at Rs 53.76 crore, showing a year-on-year growth of 200%.

Keeping in line with its corporate social responsibility, MindTree has also provided for employee stock options (ESOP) to the Spastics Society of Karnataka and to the child affected by cerebral palsy, Chetan KS, who designed the logo of the company.

These options were provided in 2000. The proceeds of the forthcoming IPO would be used towards the setting up of a new development centre in Chennai, prepay certain debts and for other general corporate purposes.