Bangalore based IT Solutions company Mindtree Ltd is entering the mobile handsets business with white labelled ready-to-brand mobile handsets. The new business, called N!Mo (Next in Mobility) will offer handsets to telecom operators and OEMs; Samartha Raghava Nagabhushanam has been appointed President & CEO of the business, which will be a part of MindTree’s Product Engineering Services group.
The entry into this business has been enabled by Mindtree’s acqusition of Kyocera Wireless’ Indian operations, which was announced a few days ago. Established in 2003, Kyocera Wireless (India) developed custom wireless handsets for Indian service providers, and wireless product development, software engineering, and product testing for Kyocera’s global product portfolio.
The Kyocera team has delivered 45 Million wireless phones and has extensive experience in 4G technologies such as WiMax and Long Term Evolution (LTE), according to the release. Kyocera Wireless (India) employs approximately 600 people, with a development center in Bangalore. According to its (outdated) webpage, Kyocera Wireless India has primarily developed CDMA handsets for Reliance, Tata Teleservices, BSNL, and MTNL, apart from assembling phones in India through a partnership with XL Telecom.
Terms Of The Deal
Under the agreement, MindTree will make an upfront payment of approximately $6 Million, and further payments linked to revenues in financial years 2010-11 and 2011-12. MindTree expects this acquisition to contribute approximately $9 Million in revenues for the period October 2009 to March 2010, with Profit After Tax expected to be in the range of 13-15%. The acquisition is subject to legal and statutory requirements, as well as certain closing conditions.