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India's PE-backed Mindtree to buy US, UK-based IT firms

  • Holden Mann
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Indian IT services firm Mindtree, which is backed by Nalanda Capital and Global Technology Ventures Limited, will buy US-based Relational Solutions and UK-based Bluefin for a total of $76 million.

The acquisitions will help Mindtree grow its service offerings, according to separate regulatory filings, with an emphasis on analytics and supply chain optimization software. Mindtree will pay $7 million upfront for Relational, with an additional $3 million payable over the next two years; the price for Bluefin is GBP34 million ($53 million) upfront and GBP8.3 million over the next three years.

These are the second and third international acquisitions for Mindtree this year. In February the company bought US-based insurance solutions developer Discoverture for $15 million. The acquisitions mark a shift in Mindtree's strategy away from the domestic focus it has held since 2010.

Mindtree has received several rounds of PE and VC funding since its founding in 1999 as Mindtree Consulting. According to the company's most recent annual report, as of March 31, 2015, Nalanda and Global Technology Venures held a 9.4% and 6.3% stake, respectively.

For the year ended March 31, 2015, the company reported total revenues of INR36 billion ($567 million), up from INR31 billion the year before. Over the same period, profit grew from INR4.5 billion to INR 5.3 billion.

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