Product engineering solutions firm AXISCADES today said it will acquire Bengaluru-based Mistral Solutions for Rs 175 crore.
The acquisition, which will be completed in a phased manner, will add significantly to AXISCADES' embedded practice and is pegged at Rs 175 crore, it said in a statement.
In a BSE filing, AXISCADES said it will acquire about 43.38 per cent from existing equity shareholders of Mistral Solutions "including but not limited to Explore India Leisure and Hospitality (shareholder company)".
"Total consideration for acquisition under Phase I is Rs 70.13 crore," it added.
The transaction is likely to conclude within 45 days and is subject to completion of all regulatory compliances.
It added that the "shareholder of AXISCADES" has proposed to advance a debt to the shareholder company of Mistral Solutions to facilitate the promoter shareholders of Mistral to acquire equity shares from third party shareholders in Phase I.
In Phase II, AXISCADES would acquire 44.62 per cent. It will have the right to acquire the balance minority stake in Phase III from Mistral's shareholders by the end of the fifth year.
Mistral was co-founded by Anees Ahmed and Rajeev Ramachandra in 1997. It clocked Rs 132 crore in revenue last year and employs nearly 300 people across India and the US.
The current founders and the management team will continue to run the operations.
"This acquisition of Mistral helps us to be a significant player in the Defence Offset and digital technologies... This acquisition is EPS accretive," said Sudhakar Gande, Vice- Chairman of AXISCADES.
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