Mindtree acquires two companies to shore up its digital business

With marginal growth in net profit, mid-tier software services firm Mindtree is on its way to shore up its digital business. It bought UK-based SAP HANA consultancy Bluefin Solutions and Ohio, US-based Relational Solutions Inc for a combined value of nearly $75 million.

Mindtree bought Bluefin Solutions for about 42.3 million pounds, as part of a push to help its largest customers simplify their business processes using SAP's business software. Chief executive Krishnakumar Natarajan said the acquisition would help Mindtree's customers in rapidly digitizing their operations.

"We are very excited about the synergies both Mindtree and Bluefin bring in the digital space. The acquisition will strengthen our position to offer the full spectrum of SAP services. Bluefin's focus on SAP HANA and their expertise across the SAP portfolio creates the scale to deliver transformational services while driving greater efficiencies and operational effectiveness," said Krishnakumar Natarajan, chief executive and co-founder of Mindtree.

Mindtree also bought US-based analytics provider Relational Solutions Inc (RSI) for about $10 million. RSI provides analytics solutions primarily for the consumer packaged goods sector.

Coming back to its growth in net profit, for the quarter ended June 30, net profit stood at $21.8 million, up 0.6% from the same period last year. Revenue climbed 9.7% to $154.9 million, helped mainly by new deal wins during the quarter and a strong performance from its digital business which grew 12.7% sequentially.

In rupee terms, net profit jumped 6.8% from the year-ago period to Rs. 138.2 crore, while revenue rose 16.4% to Rs. 981.6 crore.

Mindtree's shares closed nearly flat at Rs.1225 on the BSE on Thursday.

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