MindTree acquires Indian R&D unit for Kyocera

[jayanthi mandhalapu]

According to the most recent updates, Kyocera Wireless is selling off its Indian development subsidiary to an Indian services company, MindTree.

Under the deal, MindTree will offer research and development services in context of mobile handset design and back end mobile infrastructure to Kyocera. In recessionary period, many vendors have turned over Indian service providers for R&D work to save on costs.

Kyocera Wireless established its Indian unit in 2003 and is involved in wireless product development, software engineering, and product testing. The Bangalore unit has around 600 staff.

Still after the MindTree acquisition, the unit will continue its support to provide engineering services to Kyocera Wireless and other Kyocera entities on a contract basis.

Under the deal, MindTree will make an upfront payment of about US$6 million, and further payments linked to revenues in the financial years ended March 2011, and March 2012. The deal will help MindTree to add around about $9 million in revenues for the period October 2009 to March 2010.

The acquisition is subject to legal and statutory requirements and as well as certain closing conditions.