IT services firm MindTree has announced plans to acquire Kyocera Wireless India in a deal that the firm said would improve its mobile device product engineering services while also raising revenues.
Kyocera Wireless India carries out software engineering product testing and development for the entire Kyocera group, and will continue to do so on a contract basis after the deal closes, according to those involved.
"We are pleased to enter into this agreement with MindTree," said Yasuyuki Yamamoto, general manager of Kyocera's Corporate Communication Equipment Group.
"This allows Kyocera to improve its cost structure and competitiveness while providing MindTree with a strong engineering resource, especially in the field of software for mobile devices."
MindTree will make an upfront payment of approximately $6m (£3.75m), plus further payments dependent on the financial performance of the business. The company expects to see an extra $9m (£5.6m) in revenues in the next year as a result of the deal.
"With this acquisition we will be able to further strengthen our leadership position by offering end-to-end design and technology services to wireless original equipment manufacturers and service providers," said Janakiraman S, president and group chief executive for product engineering services at MindTree.
"Kyocera is a global technology leader, and this acquisition makes them a major strategic client for MindTree. We are excited about this relationship, and look forward to building a long-term association by offering value-based services."
See also:
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The former head of the Indian Software and Services Association discusses recent trends in outsourcing 23 Sep 2009All IT Services & Outsourcing Tags: Mindtree, Services, Mergers, Kyocera-wireless-india, Outsourcing
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