Bangalore-based Mindtree Ltd today announced that it has entered into an agreement with Kyocera Wireless Corp (KWC) to acquire the latter’s India unit which offers services related to wireless product development, software engineering and product testing to KWC as well as custom-made handsets for the Indian service providers.

The Indian unit has a staff strength of 600 and is located at Bangalore.

As part of the deal, Mindtree will make an upfront payment of $ 4 million and additionally make payments linked to revenues for the year 2010-11 and 2011-12.

The deal is subject to meeting the legal and statutory requirements as well as closing conditions.  

Post deal, Mindtreee expects the acquired firm to contribute $ 9 million in revenues from the period October 2009 to March 2010 with A PAT in the range of 13-15 %. The unit will continue to provide its services to KWC.

“MindTree has established a global leadership position in technologies such as short-range wireless and multimedia codecs that are integral to wireless communication devices. With the acquisition of Kyocera Wireless (India) Pvt. Ltd. we will be able to further strengthen our leadership position by offering end-to-end design and technology services to wireless Original Equipment Manufacturers and service providers,” said MindTree President and Group-CEO, Product Engineering Services, Janakiraman S. “Kyocera is a global technology leader and this acquisition makes them a major strategic client for MindTree. We are excited about this relationship and look forward to building a long-term association by offering value-based services.”

“We are pleased to enter into this agreement with MindTree,” said Yasuyuki Yamamoto, General Manager of Kyocera Corporation’s Corporate Communication Equipment Group. “This allows Kyocera to improve its cost structure and competitiveness while providing MindTree a strong engineering resource, especially in the field of software for mobile devices.”

“The acquisition of Kyocera Wireless (India) is a significant milestone for MindTree. As part of our Product Engineering Services (PES) business, MindTree offers design and technology services that range from chip to cloud. Wireless technologies form a critical element in this space. The acquisition, and our relationship with Kyocera, will fuel MindTree’s growth in the global PES market,” said MindTree CEO & Managing Director Krishnakumar Natarajan.