MindTree to acquire semiconductor design firm

Software services firm MindTree Consulting is planning to acquire a high-end Indian semiconductor design company in an all-cash deal.

"We have signed a non-binding term-sheet to acquire a high-end semiconductor design company," chairman and managing director Ashok Soota told reporters here.

Officials of the mid-sized firm said the target company has a sales presence in the US and a delivery centre in India.

The deal is subject to satisfactory completion of due diligence, negotiation and execution of definitive agreements and receipt of applicable corporate and regulatory approvals.

Officials said if the acquisition is concluded, a part of the consideration would be paid upfront and the balance would be paid later. "If concluded, we expect the target company to further strengthen our IC design capability and give us access to new customers," a MindTree official said.

The company has made two acquisitions - the software division of ASAP and its subsidiary in September 2004 and Linc Software Services in June 2005.

Soota, who was speaking at an IPO road-show here, said: "We will use M&A much more aggressively than we have done in the past. Acquisitions will play a larger part."