New Delhi: Days before iGate's acquisition by French IT giant Capgemini, the US-based firm sold off its domestic infrastructure management services (IMS) operations to India's MindSquare Technologies for about $80,000 (about Rs 50 lakh).
MindSquare Technologies is a group company of Mumbai-based 1neoteric Technology Solutions.
An iGate spokesperson confirmed the deal and said "it was a less than Rs 50 lakh ($80,000) transaction".
However, sources privy to the deal had said the deal is estimated to be worth about $5 million financed through internal accruals.
Under the agreement, MindSquare has acquired the entire Indian customer base of iGate, along with its over 400 employees that provide remote and onsite IMS services to Indian customers of the US-based firm.
"Apart from the capability of offering end-to-end customer solutions, the deal has also helped us bring on board marque customers," Neoteric Technology Solutions Head Anup Nair told PTI.
Merisis Advisors advised Neoteric on the acquisition.
On April 27, Capgemini had said it will buy Nasdaq-listed iGate for $4.04 billion (Rs 25,000 crore) in cash.
Interestingly, iGate had bought India's Patni Computer Systems in 2011 in partnership with private equity giant Apax Partners in a $1.2-billion deal.
Set up in 2012 by industry veterans Balakumar Vijayendran, Sanjay Nayak and Vaishali Bansal, MindSquare offers a range of managed infrastructure services. Earlier this year, it received a strategic investment from 1neoteric and became part of the 1neoteric Group.