Sterlite Technologies (STL) on Monday announced the signing of definitive agreements to acquire Optotec S.p.A, a leading optical interconnect products company based in Italy.
Optotec is a privately held Company which provides a complete range of Optical Interconnect Products for Telecommunication, FTTH and Cloud Networks in Europe.
Optotec, under its patented technology, has an end-to-end portfolio ranging from Outside Plant (OSP) to Central Office (CO) to Customer Premises (CP) that would complement STL's 'Opticonn' offering of optical fibre and cables for a truly integrated products portfolio. Optotec has a strong legacy in Optical Interconnect portfolio of over 20 years and shares long standing relationships with marquee European telecom operators.
The transaction is structured to acquire 100% of Optotec's shareholding on closing at an enterprise value (EV) of 29 million euros in cash. The deal will be financed by a mix of internal accruals and foreign currency debt instruments. The closing of the transaction is subjected to customary regulatory approvals. The acquisition will create a solid springboard to offer a complete bouquet of solutions to customers across Europe, India and the Middle East. The indicative time period for completion of the acquisition is by end of calender year 2020.
Sterlite Technologies' consolidated net profit dropped 65% to Rs 55.20 crore on 14.7% fall in net sales to Rs 1,159.53 crore in Q2 September 2020 over Q2 September 2019.
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Shares of Sterlite Technologies rose 0.62% to Rs 145.80 on BSE.
Sterlite Technologies is a leading end-to-end solutions provider for global digital networks.
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