Mindteck shops for embedded firms

BANGALORE: US-based software services company, Mindteck is planning to acquire a couple of Indian companies in the embedded space. Although the names of the companies it is in talks with were not divulged, officials confirmed that the formalities should be over within the next couple of quarters.

Apart from a couple of Indian companies, Mindteck is also in talks with a few overseas companies for the same. "There can be one major company with whom it will either be a merger or a buy-out and other smaller companies to compliment," said Mindteck group CEO Sumit Ganguli.

Mindteck is mulling the M&A route for a `definitive organic growth’ and is looking at gaining the Intellectual Property (IP) and knowledge base apart from client acquisitions from the merger and acquisition. No investment has been earmarked for the M&A and that is where its promoter, Baharain-based Taib Bank EC, plays a pivotal role. "It is not that we are cash rich, but we have the backing of a strong financial institutions that have the expertise for such mergers and acquisitions," added Ganguli.

Taib Bank has 74 percent stake in the company, while the rest is held by employees, investors and public. The company is listed in the Bombay Stock Exchange (BSE). The merger and the acquisition could also be a part stock, part cash deal. Mindteck has three development centers in India at Bangalore, Kolkata and Mumbai, with plans underway for a fourth development center to be located either in ITPL or Electronic City in Bangalore. It also has offices in USA, UK, Japan and Singapore.

The company is engaged in developing solutions in the banking, finance and insurance space. In the embedded systems, it is involved in developing solutions for the semiconductor testing equipment, semiconductor manufacturing tools, wireless Internet connectivity and Web Services using both J2EE and .Net platforms.

The company plans to add about 150 employees this year, to its existing 450 strong team and increase its revenue from $15 million, posted during the last fiscal (2001-02) to $80 million within the next four years.