Kavveri Telecom buys Rymsa Telecom for Rs 135 cr

Indian telecom equipment-maker Kavveri Telecom today announced the complete acquisition of Europe-based Rymsa Telecom for 20 million euros (approximately Rs 134 crore).

With this acquisition, Kavveri expects its topline revenue to increase by 15 million euros.

"The timing of the Rymsa Telecom business acquisition coincides with the launching of 3G in India, where there will also be a major market for Rymsa high performance antennas," Kavveri Telecom Products Managing Director Shivakumar Reddy said in a statement.

Rymsa Telecom makes telecom antenna which are used in the back-end infrastructure of telecom networks. The company has established its business in Europe and Latin America and is growing its market share in the West Asia, Commonwealth of Independent States (CIS) and Africa.

Kavveri said that Rymson's clientele includes operators like Telefonica, Orange, Claro, Movistar, Telcel, Americamovil and key telecom equipment-makers like Nokia Siemens Networks and Ericsson.

The acquisition of Rymsa Telecom significantly enhances Kavveri's antenna product portfolio and also expands the existing sales channels for the Kavveri Group of Companies in Europe and Latin America.

"Considerable time was spent to identify a purchaser that was right for the Rymsa Telecom business. The synergies are excellent between the two companies and Kavveri has the resources, capabilities and market strength to ensure the long-term growth and success of Rymsa Telecom," Director of Radiacion y Microondas, SA (Rymsa), Javier Arana said.

Rymsa has production and design facilities in Spain, the United States, and Mexico, which will now be owned by Kavveri Telecom.

Shares of Kavveri Telecom were being quoted at Rs 144 apiece, up by 1.77%, during the first half of trade on the BSE today.