According to The Economic Times, the deal is worth “$50 million, which includes an upfront payment of $37 million and earnouts, and additional payments of $13 million over the next two years.”
This acquisition positions the company in addressing and leading the fast-growing cloud-based services market.
Magnet 360 brings more than 100 Salesforce experts to Mindtree. The former has been a Salesforce partner since 2004. It works with companies across the full suite of Salesforce solutions such as CRM, branded sites and communities, social campaign strategy and management, and marketing automation.
“We are now seeing clients starting to invest heavily in digital transformation programs beyond just building the customer experience layer,” said Krishnakumar Natarajan, CEO and MD, Mindtree. “This acquisition will strengthen our offerings in digitizing the value chain and building sense-and-respond systems,” he added.
Matt Meents, CEO, Magnet 360, said:
“Our expertise in Salesforce, combined with Mindtree’s strategic relationships with Global 2000 companies, will position us among the leading consulting, implementation and integration partners for Salesforce programs. We are very excited about becoming a key part of Mindtree’s future growth.”
Incidentally, Natarajan is being promoted as to Executive Chairman from April 1, later this year. Meanwhile, Rostow Ravanan, would be taking over from Natarajan.
Subroto Bagchi will step down as Executive Chairman and will continue to be a Board member.
Ravanan, 44, who is a member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India and alumni of Harvard Business School, said on his appointment, “I am very honored and humbled at being named to lead one of the most valuable and respected IT services companies. It will be my endeavor to build further on this legacy and take the organization to greater heights on the strength of a stellar leadership team, the expertise and dedication of Mindtree Minds and an amazing set of customer relationships.”