MindTree acquires majority stake in Aztecsoft

May 2nd, 2008 - 9:48 pm ICT by admin  

Bangalore, May 2 (IANS) Global IT service firm MindTree Ltd is acquiring around 33 percent equity (1.5 million shares) in Aztecsoft Ltd for Rs.1.72 billion ($43 million) for a majority stake in the Bangalore-based software firm, the company said here Friday. In a notification to the National Stock Exchange (NSE), the Rs.7.6 billion MindTree said it would also make an open offer to Aztecsoft’s shareholders to buy an additional 20 percent equity holding. Morgan Stanely India has been appointed to manage the open offer.

“MindTree is acquiring the entire equity stake of E4E Holdings Ltd at Rs.80 per share, which values Aztecsoft at an equity valuation of $90 million (Rs.3.6 billion). Post-acquisition, MindTree will merge Aztecsoft with itself,” the company said in a statement later.

As a leader in the outsourced product development and testing markets, Aztecsoft provides full lifecycle product engineering, testing and professional services to application and infrastructure software vendors, besides new media and Internet-based firms. It has 2,100 employees.

“Aztecsoft acquisition is a momentous occasion for us. It is aligned with our values, culture and corporate governance. We believe this buy will be beneficial for customers, people and shareholders of both the organisations,” MindTree chairman and managing director Ashok Soota said.

Aztecsoft CEO Samir Bodas said the merger with MindTree would enable the company to offer its customers newer services and solutions.

“As a differentiated leader in OPD (outsourced product development) and testing spaces, we will be positioned as the best product engineering and independent testing services firm in India,” Bodas said.

Incidentally, both firms were founded by former headhonchos of Indian IT bellwether Wipro Ltd.

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