Monday, May 5, 2008

Aztecsoft Informed The Company Received Intimation From Mind Tree Ltd

Aztecsoft Ltd has informed that the Company has received intimation from MindTree Ltd (the Company) that in the Board Meeting of MindTree Ltd held on May 02, 2008, they have considered and unanimously approved the proposal to acquire 14,655,280 equity shares of Rs 3 each of Aztecsoft Ltd (Aztecsoft) constituting 32.57% of the voting capital of Aztecsoft on the date of this notice, for a purchase consideration of Rs 1,172,422,400 (Rupees One Billion One Hundred Seventy Two Million Four Hundred Twenty Thousand Four Hundred only), from E4E Holdings Ltd, the existing promoter of Aztecsoft. The Company has executed a Share Purchase Agreement with E4E Holding Ltd to this effect.

The Company has also intimated that it proposes to make a public announcement followed by an open offer (Open Offer) under Regulations 10 and 12 of the Securities & Exchange Board of India (Substantial Acquisition of Shares & Takeovers) Regulations, 1997 (SEBI(SAST) Regulations) to the public shareholders of Aztecsoft, in accordance with the relevant provisions of the SEBI (SAST) Regulations.
The Company has also intimated that it has appointed Morgan Stanley India Company Pvt Ltd as the Manager to the open offer. MindTree Ltd has also sent us Public Announcement of offer which was placed before the Board and taken on record pursuant to Regulation 22(2) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

In this regard the draft Press Release being made by the Company and sent to the Aztecsoft Ltd by MindTree Ltd, which was taken on record by the Board.
MindTree Consulting Ltd on May 02, 2008 has announced that it has signed a definitive agreement with the largest shareholder of Aztecsoft Ltd to acquire 32.57% at Rs 80 per share, which values the Company at an equity valuation of USD 90 Million. MindTree will also announce an open offer to Aztecsofts public shareholders to purchase up to an additional 20% equity ownership interest. These transactions are subject to customary regulatory filings, clearances and approvals. After the completion of these transactions, MindTree will initiate the process of merging Aztecsoft into itself.

Aztecsoft is a leader in the Outsourced Product Development (OPD) and Testing markets as a 2,100+ people strong software engineering services Company. It provides full-lifecycle product engineering, independent testing, sustenance engineering and professional services to application and infrastructure software vendors, as well as to New Media and Internet-based companies. It has successfully completed over 1,600 product releases to date.

This marks a momentous occasion for us all. Aztecsoft is truly aligned with MindTrees values, culture and high standards of corporate governance. We believe this step will be beneficial for customers, people and shareholders of both the organizations, said MindTree Chairman & Managing Director Ashok Soota.

The product stack of OPD encompasses embedded, platform/infrastructure, middleware, application, and SaaS/cloud-computing software segments. Through its R&D Services business, MindTree is well recognized in the hardware engineering, system platform and embedded software segments of the OPD market. With the addition of Aztecsoft, MindTree will offer customers a complete end-to-end OPD product stack encompassing embedded, platform/infrastructure, middleware, application, and SaaS/cloud-computing software segments. Aztecsoft brings solid presence from platform all the way to the cloud computing segments. The combined entity will, thus, cover the entire product development stack. In addition, Aztecsoft also brings deep expertise in independent testing. Together, MindTree will have a 2,000+ Testing services team, making it one of the strongest in the market.

Aztecsoft will complement MindTrees expertise in both IT and R&D Services. For our IT Services customers, Aztecsofts software product knowledge will give us a unique edge in architecting, integrating, deploying and managing the right solutions, said MindTree Chief Executive Officer Krishnakumar Natarajan. Aztecsofts expertise in OPD and Testing markets, coupled with our R&D Services business, makes us a leader serving top global technology Companies.

Aztecsoft Chief Executive Officer Samir Bodas said, We are delighted about the merger with MindTree, and are very excited about the road ahead. For over a decade, Aztecsoft has established itself as a differentiated leader in the OPD and Testing spaces. With MindTree, we will further extend this leadership, and be able to offer our customers newer services and solutions. Together, we will be positioned to become the best Product Engineering and Independent Testing Services Company in India.

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