MindTree to acquire Kyocera Wireless India

BANGALORE, INDIA: MindTree Ltd announced that it has signed an agreement with Kyocera Wireless Corp. (KWC) to acquire Kyocera Wireless (India) Pvt. Ltd., its Indian subsidiary. The acquisition is subject to legal and statutory requirements, as well as certain closing conditions.

Established in 2003, Kyocera Wireless (India) Pvt. Ltd. is engaged in wireless product development, software engineering, and product testing for KWC’s global product portfolio, as well as development of custom wireless handsets for Indian service providers.

Kyocera Wireless (India), with a people strength of approximately 600, has its development center in Bangalore. It will continue to provide engineering services to San Diego-based KWC and other Kyocera entities on a contract basis after the sale.

Under the agreement, MindTree will make an upfront payment of approximately $6 Million, and further payments linked to revenues in financial years 2010-11 and 2011-12.

MindTree expects this acquisition to contribute approximately $9 Million in revenues for the period October 2009 to March 2010, with Profit After Tax expected to be in the range of 13-15%.

“MindTree has established a global leadership position in technologies such as short-range wireless and multimedia codecs that are integral to wireless communication devices. With the acquisition of Kyocera Wireless (India) Pvt. Ltd. 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 S. Janakiraman, MindTree President and Group-CEO, Product Engineering Services.

“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.”
“We are pleased to enter into this agreement with MindTree,” said Yasuyuki Yamamoto, General Manager of Kyocera Corporation’s Corporate Communication Equipment Group.

“This allows Kyocera to improve its cost structure and competitiveness while providing MindTree a strong engineering resource, especially in the field of software for mobile devices.”

“The acquisition of Kyocera Wireless (India) is a significant milestone for MindTree. As part of our Product Engineering Services (PES) business, MindTree offers design and technology services that range from chip to cloud. Wireless technologies form a critical element in this space. The acquisition, and our relationship with Kyocera, will fuel MindTree’s growth in the global PES market,” said MindTree CEO & Managing Director Krishnakumar Natarajan.