 "Sterlite Tech acquires Elitecore Technologies for Rs 180 crore")
Mauritius' First Carlyle Ventures is a majority stake holder in Elitecore Technologies. The transaction is expected to be value accretive by FY17 and is expected to be closed shortly subject to completion of certain regulatory and statutory formalities.
Pravin Agarwal, vice chairman, Sterlite Technologies said, "The transaction follows our strategy to undertake attractive M&A opportunities in the entire telecom value chain.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."
Established in 1999 by few software technocrats, Elitecore has made significant inroads in both Indian and global telecom operators and has expanded its geographic footprint in South East Asia, Middle East & Africa and lately Eastern Europe and Latin America. The company has clocked revenue of Rs 147crore for FY'15 with EBITA (earnings before interest, taxes, depreciation and amortization) martgins of Rs 16 crore. It's cash positive on a net debt basis.
With this acquisition, Sterlite will capitalize on the broadband data network creation globally by offering a larger range of products and solutions especially focusing on the high value product segments. Elitecore's portfolio enables Sterlite to serve Telco operators' mission critical applications that drive profitability and scalability.
It also opens up access for Sterlite to a large multi-billion dollar market which, when combined with the existing large and expanding market for optical products globally, significantly enhances the overall growth opportunity for the company. Elitecore's non-linear business model offers complementary advantages to Sterlite's current business model catering to requirements of high speed data networks in India and globally.
