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Mindtree to buy Magnet 360 for $50 mn

The deal, expected to close in the next two months, will see about 150 people joining Mindtree.

twitter-logo PTI   New Delhi     Last Updated: January 18, 2016  | 18:24 IST
Mindtree to buy Magnet 360 for $50 mn
Picture for representational purpose. Headquartered in Minneapolis, Magnet 360 has offices in New York, Los Angeles and Chicago. Its revenues were about $25 million and its business is growing at about 20-25 per cent.

IT firm Mindtree said on Monday it would acquire Salesforce consulting partner Magnet 360 in an all-cash deal of $50 million (about Rs 338.3 crore).

The deal, expected to close in the next two months, will see about 150 people joining Mindtree.

"Magnet 360 brings strong expertise across Salesforce Sales, Service and Marketing Cloud implementations. Combined with our Salesforce practice, this acquisition positions us for leadership in the fast-growing cloud-based services market," Mindtree CEO and Managing Director Krishnakumar Natarajan said in a conference call.

He added the consideration includes an upfront payment of $37 million and earn out and additional payout of up to $13 million over the next two years.

"With the acquisition of Magnet 360, Mindtree adds more than 100 certified Salesforce experts. This will strengthen our ongoing focus on delivering customer success by helping clients digitize their entire back-end value chains," he said.

Headquartered in Minneapolis, Magnet 360 has offices in New York, Los Angeles and Chicago. Its revenues were about $25 million and its business is growing at about 20-25 per cent.

Salesforce Ventures has invested in Magnet 360 along with StarTec Investments and Gage Group.

Mindtree has been aggressively acquiring companies to expand its services.

Last year, it made three purchases-Discoverture Solutions (over Rs 92 crore), UK-based Bluefin Solutions (about Rs 419.6 crore) and Relational Solutions (about Rs 63.5 crore). Previously, it has acquired firms like 7Strata, Kyocera Wireless and Aztecsoft.

 

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