Elitecore in talks for $30 mn acquisition in Europe

Ahmedabad-based network security provider Elitecore Technologies is in talks with some of the leading telecom products players in Europe for a possible acquisition for $ 30 million (Rs 162 crore approx.). The company which itself offers enterprise solutions in the telecom industry is looking to tap the western markets through inorganic growth.

"We are in talks with players mostly in the telecom segment for possible acquisition in the range of $25-30 million. The talks are on with players in Europe in order to tap the western countries," said Hemal Patel CEO, Elitecore Technologies. To fund such an acquisition, the company is looking at private equity investment either from Carlyle Group or any other player, apart from debt and internal accruals.

However, Patel denied to divulge further details on the company's plans to source funds externally. In 2007, Carlyle Group had invested close to $11 million for 33 per cent stake in Elitecore Technologies for a nine year period.

The company is currently working with some of the major global telecom operators for various IT products relevant for the industry.

For instance, the company serves its telecom clients its policy management product line NetVertex which enables the service providers to offer its broadband subscribers with new service plans that include bandwidth on demand features, tiered price plans and application based quota management and charging policies. 

While it expects to peg a turnover of $45 million (roughly Rs 242 crore) for the financial year 2012-13, Elitecore Technologies aims to become a $200 million company in next 3-4 years.