| BANGALORE, INDIA – 2 April 2008: Mindteck (India) Limited, a global Technology and IT services company, today announced acquisitions of three more companies. The company completed |
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the acquisition of Primetech Solutions, Inc., a California based IT Consulting company. It also acquired two of its associate companies Mindteck UK Ltd., based in London, UK and Mindteck Singapore Pte Ltd, based in Singapore. The total acquisitions’ value was pegged at US$ 9.6 million. The acquisitions will expand Mindteck’s operation in US, Europe and Asia Pacific as part of its ‘Go Global’ strategy.
Primetech with revenues of US$ 8.7 million (est.) as of FYE 31 March 2008 provides integrated business and IT consulting services to a large client base in the US. Mindteck UK Ltd. with US$ 2.0 million revenue (est.) and Mindteck Singapore Pte Ltd. with US$ 6.75 million revenue (est.) as of FYE 31 March 2008 have strong client base in the embedded systems and IT consulting space.
In February this year, the company had completed its first acquisition in a series of four planned acquisitions. With the latest acquisitions, Mindteck implements its first phase of ‘Go Global’ growth strategy for a total investment of US$ 30.6 million. The company has a large multinational client base across the globe. Mindteck with its expanded geographic reach in Asia Pacific, Europe, and West Coast of US, would be able to offer enhanced range of services to its clients from multiple locations world-wide. The company is also expanding its sales force globally and expects to add many new clients in the coming quarters. As announced earlier, on a stand-alone basis for FYE 31 March 2008, consolidated revenue of Mindteck and its newly acquired four companies is estimated to be over US$ 75 million.
Mr. Pankaj Agarwal, Mindteck Group CEO, commented, “With every acquisition, Mindteck further strengthens its range of services in Business Applications Consulting, Security and Infrastructure Management, SAP, and Embedded Systems globally. We now provide complete IT solutions to our global multinational clients in US, Europe and Asia.” He added, “It will help us tremendously to cross sell our solutions to a globally diverse client base and improve our revenues significantly, creating more value for our share holders.”
Mindteck has raised a total of US$ 7.47 million through private equity for implementation of its ‘Go Global’ strategy. The new investments are being used to fund current acquisitions, repay debt, and for future growth. Mindteck has paid US$ 2.5 million for acquisition of its Singapore associate; US$ 1 million in cash and US$ 1.5 million through stock swap. The UK associate was acquired for US$ 0.5 million, all through stock swap. Primetech Solutions, Inc. was acquired for US$ 6.6 million, all in stock swap.
About Mindteck (India) Limited
Mindteck is a global Technology and IT Services Company that delivers business and technology solutions to a wide range of Fortune 500 companies, multinationals and successful SMEs around the globe. It has offices and development centers in India, the Middle East, U.S., and Malaysia. Core software solutions and services include Embedded Systems, Business Applications Consulting, Enterprise Consulting (SAP), and Security, Infrastructure & Managed Services. Mindteck (India) Limited is listed on the Bombay Stock Exchange (BSE 517344).
Mindteck is an ISO 9001:2000, ISO 27001:2005 certified, and a SEI CMMi Level 5 assessed company.
www.mindteck.com
For more details, please contact:
Faizan Aboli, Prana Public Relations, Ph: +91 98191 10224 or Jaydip Sikdar, Mindteck (India) Ltd., Ph: +91 98451 90713
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