Mindtree to buy Magnet 360

Mid-size IT services firm Mindtree Ltd has inked a definitive agreement to acquire Magnet 360, a Salesforce.com platinum consulting partner, for $50 Million in cash, in a move at addressing the cloud based services market. The deal amount includes an upfront payment of $37 Million and earns out and additional payout of up to $13 Million over the next two years.

With the acquisition of Magnet 360, Mindtree will add more than 100 certified Salesforce experts and help clients digitize back end values chains. This acquisition will strengthen their offerings in digitizing the value chain and building sense and respond systems. Founded in 2008, Magnet 360 specializes in Multi-clouded solutions providing consulting services and implementation, mainly to media/entertainment, manufacturing and finance industries. It is operational mainly in the US.

The company has been a Salesforce partner since 2004. Salesforce, Sales Cloud, Service Cloud, Marketing Cloud and others are trademarks of Salesforce.com. Magnet 360 works with companies across Salesforce solutions such as CRM, branded sites and communities, social campaign strategy and management and marketing automation. Salesforce had invested in Magnet 360 along with StarTec Investments and Gage Group.

The company is headquartered in Minneapolis with Offices in New York, Los Angeles and Chicago. Its revenue was about $25 Million in calendar year 2015. Bangalore based Mindtree counts Nalanda Capital, Global Technology Ventures and V G Siddhartha led café Coffee Day Group as its shareholders.