Sterlite Technologies acquires Elitecore Tech for Rs 180-crore
NEW DELHI: Sterlite TechnologiesBSE 2.23 % today announced the acquisition of telecom software product firm Elitecore Technologies at Rs 180 crore in an all-cash deal to widen its telecom portfolio.
“This acquisition widens Sterlite’s telecom portfolio of offerings to its global customers… Sterlite has taken a strategic decision to capitalise on the broadband data network creation globally by offering a larger range of products and solutions especially focusing on the high value product segments,” Sterlite Technologies said in a BSE filing.
It further said: “Sterlite is committed to growing its optical products business and has implemented expansion plans to increase capacity. It has also undertaken efforts to scale up revenue contribution from services and solutions and the addition of Elitecore’s operation will offer significant impetus to the revenue contribution from services.”
Elitecore is a provider of Operations Support Services/ Business Support Services and Carlyle Group arm First Carlyle Ventures Mauritius owned majority stake in the firm.
Commenting on the transaction, Sterlite Technologies Vice Chairman Pravin Agarwal said: “The transaction follows our strategy to undertake attractive M&A opportunities in the entire telecom value chain.”
He added, “Elitecore has had an excellent performance record…The acquisition is a lever for Sterlite to create new inflections in the telecom arena that are in line with Sterlite’s long-term goals of being an integrated telecom solution provider.
Elitecore reported revenues of Rs 147 crore in the previous fiscal.
Upon completion of the transaction, Elitecore Technologies is proposed to be merged into Sterlite Technologies, the company said.