Mumbai, May 2: Bangalore-based MindTree has signed a final agreement with the largest shareholder of Aztecsoft Ltd to buy a 32.57 per cent stake in the company at Rs 80 per share. The deal values Aztecsoft at Rs 365 crore ($90 million).

MindTree is acquiring the stake from private equity firm e4e at a premium of less than 2 per cent to the closing price of Aztecsoft today.

MindTree will announce an open offer to Aztecsoft’s shareholders to purchase up to an additional 20 per cent equity ownership interest.

The transactions are subject to customary regulatory filings, clearances and approvals. After the transactions are completed, MindTree will initiate the process of merging Aztecsoft into itself.

“We will fund the acquisition from internal accruals. We raised $55 million last year through an IPO. Parts of that fund will also be used,” MindTree CEO Krishnakumar Natarajan told The Telegraph.

Both the companies will function as separate entities until the completion of the buyback and merger.

“This marks a momentous occasion for us all. Aztecsoft is truly aligned with MindTree’s values, culture and high standards of corporate governance. We believe this step will be beneficial for customers, people and shareholders of both the organisations,” said Ashok Soota, chairman and managing director MindTree.

Aztecsoft specialises in outsourced product development (OPD) and market testing. The company has more than 2,100 employees.

It provides full-lifecycle product engineering, independent testing, sustenance engineering and professional services to application and infrastructure software vendors and to new media and Internet-based companies.

The company has released more than 1,600 products so far.

MindTree is present in hardware engineering, system platform and embedded software segments of the OPD market.

MindTree expects to be able to offer an end-to-end OPD product range, including platform infrastructure and application after its merger with Aztecsoft.