Optical fibre maker Sterlite Technologies today announced acquisition of IT firm Elitecore Technologies for about Rs 180 crore in an all cash deal.
The acquisition will enable Sterlite to offer complete backend suite broadband solution to its telecom clients.
"We have entered into an agreement with Elitecore to acquire it for around Rs 180 crore in all cash deal. We expect this transaction to close by financial year 2017," Sterlite Technologies Vice Chairman Pravin Agarwal told PTI.
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Elitecore is majorly owned by First Carlyle Ventures Mauritius, whose affiliate is advised by The Carlyle Group.
Upon completion of the transaction, Elitecore Technologies is proposed to be merged into Sterlite Technologies.
"Elitecore provides software on top of telecom infrastructure for network management, customer support, operation and billing which adds value to our business of setting up network. With Elitecore being part of Sterlite we will have deeper engagement with our customers," Agarwal said.
Elitecore posted revenues of Rs 147 crore in financial year 2015 and is cash positive on a net debt basis, he said.
"This acquisition offers us global expansion opportunity as well. Elitecore has two-third revenue from overseas business and one-third from India. The essential clients base of Sterlite and Elitecore is same which is telecom," Agarwal said.
"Elitecore's growth will benefit immensely from Sterlite's market access, geographic reach, delivery capability and financial strength," Elitecore Technologies MD and CEO Nikhil Jain said.
Shares of Sterlite Technologies closed at Rs 82.8, up by 2.73 per cent, compared to previous close at BSE today.
