MindTree to buy 32.57 percent stake in Aztecsoft at Rs.80 per share; Open offer on the cards

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The shares will be purchased from Aztecsoft's majority shareholder, Mauritius-based e4e Holdings, for around $29.25 million, in an all-cash deal.

For MindTree, Morgan Stanley and Amarchand & Mangaldas were the lead managers, while Yes Bank handled the deal for e4e Holdings.

The Bangalore-based firm also said it will comply with the regulations and make an announcement for an open offer to Aztecsoft's shareholders for an additional 20 percent equity ownership interest.

After the completion of the transactions, MindTree will merge Aztecsoft into itself, a move that will make MindTree the market leader in outsourced product development, research and testing, a statement issued by MindTree said.

MindTree's acquisition offer gives Aztecsoft an enterprise value of $90 million.

The deals, subject to standard regulatory filings, clearances and approvals, are expected to be completed by the third quarter of this year.

"Aztecsoft will complement MindTree's expertise in both IT and R&D Services. For our IT services customers, Aztecsoft's software product knowledge will give us a unique edge in architecting, integrating, deploying and managing the right solutions," said Krishnakumar Natarajan, CEO, MindTree.

"Aztecsoft's expertise in outsourced product development and testing markets, coupled with our research and development services business, makes us a leader serving top global technology companies," he said.

According to Ashok Soota, chairman and managing director, MindTree, the acquisition will be funded by internal accruals.

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