Mindtree acquires UK and US firms to enhance its digital and analytics segment

By: | Updated: July 17, 2015 9:58 AM

Mindtree announced the acquisition of UK-headquartered Bluefin Solutions for 42.3 million pounds (Rs 414.54 crore) and US-based Relational Solutions for $10 million to strengthen its presence in digital and analytics segement.

mindtree acquisitionMindtree ended the first quarter with an employee headcount of 14,427 while the attrition rate was 18.4%. (Source: Mindtree)

Mid-tier IT services company Mindtree on Thursday announced the acquisition of UK-headquartered Bluefin Solutions for 42.3 million pounds (Rs 414.54 crore) and US-based Relational Solutions for $10 million to strengthen its presence in digital and analytics segement. The company also declared its results for the first quarter of FY16 with net profit rising 7.4% q-o-q.

The Bluefin Solutions acquisition involves an upfront payment of 34 million pounds and earn out of 8.3 million pounds payable over the next three years. In the case of Relational Solutions, the upfront payment will be $7 million and earn out of $3 million payable over the next two years.

Krishnakumar Natarajan, Mindtree CEO & MD, said, “With both these acquisitions, we believe Mindtree will become the leading provider of delivering digital transformational solution to our clients.”

Bluefin specialises in SAP HANA Solutions and this acquisition is expected to help Mindtree in providing digital services for its SAP clients. In addition, Bluefin’s strong presence in Europe is likely to boost the expansion of Mindtree in the region while giving it a strong push into the US market. Relational Solutions is a company that specialises in technology services to the consumer goods industry with focus on the anlaytics segment.

Mindtree, for the first quarter of FY16, reported a net profit of Rs 138.2 crore recording a sequential growth of 7.4%.

The revenue in this period touched Rs 981.6 crore registering a sequential growth of 6.9%. In US dollar terms, Mindtree for the first time crossed quarterly revenue of $150 million to reach $154.9 million with a sequential growth of 4.8% while the net profit rose to $21.8 million, a rise of 5.5%.

Among the verticals, BFSI grew over 10% while retail CPG rose 6.5% sequentially. Mindtree has signed deals worth $208 million out of which renewals are $107 million and new orders were $38 million.

“Given the closure and healthy pipeline we have, we believe Q2 will be better than Q1. Overall, we see the demand scenario to be strong,” Natarajan said, adding, “For FY16, we will beat Nasscom estimate.”

Mindtree ended the first quarter with an employee headcount of 14,427 while the attrition rate was 18.4%.

Report card

1.Mindtree net profit rose 7.4% q-o-q to R138.2 crore in Q1

2.Revenue touched R981.6 cr registering a sequential growth of 6.9%

3.Among the verticals, BFSI grew over 10% while retail CPG rose 6.5% sequentially

4.In dollar terms, Mindtree for the first time crossed quarterly revenue of $150 million to reach $154.9 million with a sequential growth of 4.8%

5.Mindtree has signed deals worth $208 million out of which renewals are $107 million and new orders were $38 million

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