Mindtree Announces New Leadership Team
Bangalore-based IT-services company Mindtree announced a top-level organizational rejig naming Rostow Ravanan as the CEO and managing director, while incumbent CEO Krishnakumar Natarajan has been elevated to the position of executive chairman. Subroto Bagchi, co-founder, is stepping down as executive chairman, but continues on the board as a non-executive director, the IT services firm said in a statement.
“This is the culmination of a year-long succession planning exercise that the board had undertaken after carefully considering several candidates. We are very happy with the process and the outcome,” said Apurva Purohit, independent director and chairperson of the nomination and remuneration committee of the board. All new appointments will be effective from April 1, 2016.
Ravanan (44) moved out from his earlier role as the chief financial officer (CFO) of the company in April 2014 and took over as the head of Europe, service lines and key accounts. “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,” said Rostow in a statement.
Mindtree was one of the first venture capitalist-backed software services companies in India started by Natarajan, Bagchi, Ravanan, along with seven co-founders from Wipro, Cambridge Technology Partners and Lucent. This is the second major leadership realignment at MindTree, after one of its founder Ashok Soota exited the company in a bitter boardroom in 2011. Soota later founded another IT services firm Happiest Minds. Another co-founder S Janakiraman quit in 2014 to build a cloud computing start-up, reports Business Standard.
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Mindtree also announced its quarterly earnings on Monday. In dollar-terms, net profit was up 0.2 percent year-on-year to $22.8 million, (a 5.9 percent decline sequentially), for the quarter ended December 2015. Revenues rose 24.8 percent year-on-year to $184.4 million. Mindtree had 294 active clients and 16,243 employees (addition of 1,306 employees at gross level) as of December 31, 2015.
We saw good revenue growth in Q3 as we continue to strike the right chord with our clients. This broad-based result reflects the ongoing momentum of our key focus areas such as digital and managed services. Those initiatives combined with our recent acquisitions and deal wins are creating a clear path to further our growth trajectory,” K Natarajan, CEO and managing director, Mindtree, said in a statement.
The deal, expected to close in the next two months, will see about 150 people joining Mindtree. “Magnet 360 brings strong expertise across Salesforce Sales, Service and Marketing Cloud implementations. Combined with our Salesforce practice, this acquisition positions us for leadership in the fast-growing cloud-based services market,” Mindtree CEO and Managing Director Krishnakumar Natarajan said in a conference call.
He added that the consideration includes an upfront payment of USD 37 million and earn out and additional payout of up to USD 13 million over the next two years. “With the acquisition of Magnet 360, Mindtree adds more than 100 certified Salesforce experts.
On his new role too, Natarajan remarked, “Mindtree is on a strong footing today to explore newer opportunities that take us to a different orbit in the years ahead. I would be focusing my energies towards making Mindtree a significant global player by the year 2020.”
Subroto Bagchi said,” ”Together we have built one of India’s most valuable companies. It has been a privilege to serve this great institution”.
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