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Bangalore based information technology firm MindTree on Friday, May 2, 2008 revealed that it will acquire 52 percent stake in Aztecsoft another Bangalore based company. In one of the largest transactions between listed IT companies in India, MindTree will acquire the majority stake for Rs 190 crore. MindTree will initially buy 32.57 percent of Aztecsoft at Rs 80 per share and eventually follow it up with an open offer for an additional 20 percent.
Aztecsoft is a leading outsourced product development (OPD) and testing company. The collaboration between MindTree and Aztecsoft will generate revenues of about $ 250 million. MindTree will have an all cash deal with Aztecsoft, which is valued at $90 million (Rs 360 crore). The acquisition will be funded by internal accruals. The shares of both the companies have been rising in the broader market by a huge margin, with Aztecsoft shares going up by 46 percent and MindTree shares mounting by 40 percent in the last month.
