Tech Mahindra to pick up 17.5% stake in Altiostar for $15 mn in cash

IT company Tech Mahindra on Thursday announced it will acquire 17.5 per cent stake in US-based telecom software development company Altiostar Networks for USD 15 million in a cash deal.

The investment committee of the board of directors of Tech Mahindra "has approved the proposal to acquire shareholding in Altiostar Networks Inc, USA, through its wholly owned subsidiary, that is, Tech Mahindra (Americas) Inc, USA," the company said in a regulatory filing.

Altiostar Networks is a US Corporation with presence across six countries in Europe, Asia Pacific and Latin American regions.

"This is a portfolio investment from Tech Mahindra Ltd (TML) in the nascent but promising and fast-growing virtualised Radio Access Networks space. TML though its wholly owned subsidiary Tech Mahindra (Americas) Inc is investing an amount of USD 15 million in return for a 17.5 per cent shareholding in Altiostar on a fully diluted basis," it added.

The investment will be completed by January 19, 2018.

Altiostar, was founded in 2011 and has close to 220 employees. The company has presence in the UK, Germany, India, Mexico, Argentina and Israel.