ARN

Kyocera sells India R&D subsidiary to MindTree

MindTree, an Indian outsourcer, will now deliver development services to Kyocera Wireless

Kyocera Wireless is selling off its Indian development subsidiary to an Indian services company, MindTree, which will take over development and design work for Kyocera.

Under the agreement announced Tuesday, MindTree will offer research and development (R&D) services to Kyocera in the areas of mobile handset design and back-end mobile infrastructure, Janakiraman S, president and group CEO for product engineering services at MindTree, said on Tuesday.

A number of multinational technology companies have turned over their R&D facilities to Indian service providers to save on costs, and avoid the trouble of hiring and managing the operations in India.

Other companies such as Intel and Texas Instruments, however, continue to run their own R&D operations at their Indian subsidiaries.

Set up in 2003, Kyocera Wireless (India) does wireless product development, software engineering, and product testing for Kyocera Wireless' global product portfolio, besides developing custom wireless handsets for Indian service providers.

The center in Bangalore has about 600 staff, and after the MindTree acquisition will continue to provide engineering services to Kyocera Wireless and other Kyocera entities on a contract basis after the sale.

"There is a commitment of business to us from Kyocera," Janakiraman said.

Under the agreement with Kyocera, MindTree will make an upfront payment of about US$6 million, and further payments linked to revenues in the financial years ended March 2011, and March 2012.

MindTree said it expects the acquisition to contribute about $9 million in revenues for the period October 2009 to March 2010, with profits expected to be in the range of 13 to 15 percent.

The acquisition fits well into MindTree's focus on product engineering and services, particularly for the wireless market, Janakiraman said.

The company has built a portfolio of intellectual property to be licensed in the areas of Bluetooth and other wireless technologies.

The acquisition is subject to legal and statutory requirements, as well as certain closing conditions, MindTree said.

Come socialise with us! Facebook | LinkedIn

More about: Intel, Kyocera, Texas Instruments

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the ARN comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: R&D, outsourcing, MindTree, kyocera, indian outsourcing
ARN Directory | Distributors relevant to this article
Achieva Technology Australia , Alloys , Aquion , ASI Solutions , Compucon Computers , Impact Systems Technology , Ingram Micro Australia , Leader Computers , Leading Pacific Australia , Synnex Australia , Topstar Computer International , Westan , Xpress I.T. , J Mills Distribution
rhs_login_lockGet exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
Find distributors by name | vendor | location
Channel Deals
/deals/avg/2011-02-25_368_avg-wants-you
AVG (AU/NZ) Pty Ltd

AVG Wants You!

More details »
ARN Vendor Directory
Find vendors by name | category

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.