Flextronics acquires Deccanet

Flextronics, the $14 billion electronic manufacturing services (EMS) major, has announced that it has acquired the Bangalore-based Deccanet Designs.

This is the fourth acquisition by Flextronics in India after Hughes Software, FutureSoft and Emuzed. No financial details have been disclosed.

Deccanet is a telecommunications-focussed design company offering software and hardware design services, products and intellectual property in the core areas of telecom and test automation. Deccanet has proven expertise in building carrier class systems.

Founded in 1994, Deccanet has a team of 300 today and has stable design processes assessed at CMM Level 4. Headquartered in Bangalore, Deccanet has its business distributed across US, Europe, Asia-Pacific and India. Deccanet's major areas of expertise include telecom infrastructure products, data communication, wireline, wireless, mobile handhelds and test automation.

Ash Bhardwaj, president, Flextronics Design and Original Design Manufacturing (ODM) Services, said, "Flextronics is serious in its India design initiative. The addition of Deccanet will strengthen our ODM and design services offering in the area of carrier-class communication products and services."

Flextronics is on an acquisition spree to ramp up its design and software capabilities as it recently bagged a multi-billion dollar deal from a telecom major in the US.

It is learnt that the three software companies "" Hughes Software, FutureSoft and Deccanet "" may be eventually merged into a single entity while Emuzed, which is an IP-based company may continue as a division of Flextronics.

Commenting on the acquisition by Flextronics, Venkat Rajendran, co-founder and CEO of Deccanet, said: "We are extremely pleased to be associated with Flextronics. This provides us a global platform to extend and create high value for our customers. It allows us to fully leverage the Deccanet team's proven strengths in telecom software, hardware and products for communication industry."

Deccanet develops telecom infrastructure products for OEM clients and provides design services in infrastructure and mobile handhelds to clients worldwide. With a proven track record in R&D, Deccanet has been building world-class test automation tools that help shrink the development cycle, resulting in faster time to market.

Deccanet's early investors include GVFL Ltd, Templeton Direct Advisors and Intel Capital. The acquisition has obtained all the necessary regulatory approvals and Marchmont International of UK advised Deccanet in this transaction.