Mindtree seals twin deals for Rs 483cr
Mumbai, July 16: Mid-sized IT services company Mindtree today announced that it would acquire two companies - US-based Relational Solutions and UK-based Bluefin Solutions - for over Rs 483 crore to strengthen its digital services.
Mindtree will acquire 100 per cent of equity interest in Relational Solutions in an all-cash transaction for $10 million (about Rs 63.51 crore). The company will also acquire Bluefin Solutions for £42.3 million (approximately Rs 419 crore) in cash.
The company said in a press release that the consideration for Bluefin included an upfront payment of £34 million and an earn-out of £8.3 million payable over the next three years.
For Relational Solutions, Mindtree will make an upfront payment of $7 million and earn-out of $3 million payable over two years.
Bluefin Solutions is an independent consultancy specialising in SAP's data analytics platform HANA.
According to Mindtree, the acquisition will increase its ability to help its SAP clients digitise the value chain by ensuring a harmony between front-end customer experience and back-end systems.
It also expects Bluefin's strong European client base to boost its effort to strengthen its presence there.
"We are very excited about the synergies both Mindtree and Bluefin bring in the digital space. The acquisition will strengthen our position to offer the full spectrum of SAP services. Bluefin's focus on SAP HANA and their expertise across the SAP portfolio creates the scale to deliver transformational services while driving greater efficiencies and operational effectiveness," Mindtree CEO and MD Krishnakumar Natarajan said.
Relational Solutions is a provider of analytics for consumer packaged goods sector. It offers solutions for supply chain optimisation and trade promotions analytics.
Meanwhile, Mindtree has beaten Street estimates by posting a net profit of Rs 138.2 crore during the first quarter of the fiscal, a growth of nearly 7 per cent over the same period last year. Revenues grew 16.4 per cent to Rs 981.6 crore.
"We have a great start to the year, driven by multi-year, multi-million dollar deals and strong contract closures. Our digital story has taken off." Natarajan said.