By IANS
Bangalore : Mindteck (India) Ltd, a global technology and IT services company, has acquired the US-based Infotech Consulting and plans to acquire three more companies in the US, Europe and Asia by end of March, a top company official said Wednesday.
The Pennsylvania-headquartered Infotech Consulting is a small company with around 200 staff and valued at $21 million by the leading consulting firm Ernst & Young.
The acquisition is through cash and share swap, Mindteck marketing manager Jaideep Sikdar told IANS.
Infotech Consulting has revenue earnings of $ 31 million.
Mindteck paid $1.5 million in cash for the deal and the rest was through the offer of around 785,000 shares at Rs.98 ($2.5) per share. “We got a premium as our share closed at Rs.55 Tuesday on the Bombay Stock Exchange,” he added.
Earlier Mindteck group Chief Executive Officer Pankaj Agarwal, who founded the Infotech Consulting in Pennsylvania in 1996, said at a press meet that Mindteck will buy one more IT firm in the US, one in Britain and a third one in Singapore.
Investments in the four acquisitions will come to $30.6 million and will help raise the company’s revenue to $75 million from the present $27 million, he said.
Acquiring a British firm is part of the strategy to expand presence in Europe to reduce dependence on the US, particularly in view of the possibility of a slow down in the US economy, Agarwal said.
The company also plans to open offices in Germany and The Netherlands soon and a Chinese foray is also on the cards, he added.
Mindteck specialises in embedded systems, business applications consulting, enterprise consulting, SAP and security.