Mahindra-British buys Axes Tech for Rs 240 cr

Mahindra-British Telecom (MBT), the Rs 950 crore telecom software solutions firm, has acquired Axes Technologies for Rs 240 crore in an all-cash deal.

Axes Technologies has its primary development centres in Bangalore, Chennai and in Texas in the US, and employs close to 900 professionals who will move into the MBT fold following the deal. Axes expects to end this financial year with a topline of Rs 130 crore.

MBT, after the deal, will expand its telecom software sphere to include solutions for telecom equipment manufacturers from its present focus on telecom service provider space. Axes has clients like Alcatel and Motorola and provides solutions R&D, product engineering and life cycle support.

With the deal, MBT, a 53:47 joint venture with British Telecom, expects to see a topline of Rs 1,300 crore this financial year and will increase its manpower to 10,000.

Commenting on its first acquisition, Vineet Nayyar, MD and CEO, MBT said: "The acquisition will enable us to enhance our offerings to leading telecom equipment manufacturers, which is a major segment of our chosen market. The acquisition of Axes will bring complementary capabilities which will enable us to provide comprehensive solutions to the telecom sector."

Paul Pandian, founder and president, Axes, said: "The merger brings together two companies that are focussed on the telecom space. The merger of Axes and MBT will allow us to capitalise on MBT's presence in the telecom sector, enabling us to serve clients better and give our employees a larger platform for growth."

Commenting further on MBT growth plans, Nayyar said: "We are aggressively looking for business outside British Telecom, and over the past year this has grown some 100 per cent. This is part of our derisking strategy and the acquisition will play a crucial part in the plan."