Tech Mahindra fell 0.95% to Rs 2,678.50 at 09:43 IST on BSE after the company signed a definitive agreement to acquire global network services, leader Lightbridge Communications Corporation (LCC) for an enterprise value of approximately $240 million.
The announcement was made after market hours yesterday, 20 November 2014.
Meanwhile, the S&P BSE Sensex was up 130.26 points or 0.46% at 28,197.82
On BSE, so far 33,608 shares were traded in the counter as against average daily volume of 50,553 shares in the past one quarter.
The stock saw initial volatility. The stock hit a record high of Rs 2,741 in intraday trade today, 21 November 2014. The stock hit a low of Rs 2,662.25 so far during the day. The stock hit a 52-week low of Rs 1,643.30 on 21 November 2013.
The large-cap company has an equity capital of Rs 235.55 crore. Face value per share is Rs 10.
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Tech Mahindra after market hours yesterday, 20 November 2014 said that it has signed a definitive agreement to acquire global network services, leader Lightbridge Communications Corporation (LCC) for an enterprise value of approximately $240 million, subject to regulatory approvals. The transaction is expected to close by Q4 of Tech Mahindra's 2015 fiscal year, the company said in a statement. Headquartered in McLean, Virginia, LCC is one of the world's largest independent global providers of Network Engineering services to the telecommunications industry, with more than 5,000 employees in over 50 countries. With annual revenues of more than $400 million, LCC has built 350 networks and designed more than 350,000 cell sites for over 400 customers worldwide. The acquisition positions Tech Mahindra as the pre-eminent partner for network services globally, the company said in press release.
With this acquisition we will also be addressing a rapidly growing market opportunity as telecommunications companies and enterprises accelerate the network upgrade cycle, Tech Mahindra said. With Networks increasingly becoming all IP-based and Virtual, software will play a key role in managing the networks of the future. Tech Mahindra's deep software skills, in combination with LCC's world-class network engineering capabilities, will further differentiate Tech Mahindra's offerings to both our Communications and Enterprise customers, the company added.
The acquisition of LCC will strongly augment the systematic investments that Tech Mahindra has been making in its network services business over the last few years. Tech Mahindra's network consulting, integration and operations services in conjunction with LCC's network engineering and field services will enable the company to offer a full range of network services to both communications service providers as well as to the ecosystem of partners who cater to the Communications sector, Tech Mahindra said in press release.
Vineet Nayyar, Executive Vice Chairman, Tech Mahindra says We expect network services to be a major growth engine for our organization.
On a consolidated basis, Tech Mahindra's net profit rose 14.1% to Rs 720 crore on 7.2% growth in revenue to Rs 5488 crore in Q2 September 2014 over Q1 June 2014.
Tech Mahindra is a global company specializing in digital transformation, consulting and business re-engineering solutions. It's part of the India-based Mahindra Group.
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