Gemini Comm to acquire US wireless product firm

Gemini Communications Ltd, a networking solutions company, will acquire PointRed Technologies, a Silicon Valley based wireless product company, for an undisclosed sum.

This move is expected to enable Gemini Communications to access international wireless technology market. As apart of this, the company plans to target Middle East and North American markets, besides Europe.

Vijay Kumar, chairman, Gemini Communications, told Business Standard that the acquisition would bring in additional expertise and a range of products to Gemini's offerings.

He added that Gemini Communications was the first Indian company to acquire a US company in the wireless technology space.

The acquisition would be funded through internal accruals. Gemini would also be pumping in some money for expansion during this year. he said. However, he did not divulge the figures.

Acer Technology Venture America holds about 65-70 per cent in PointRed, which reported a revenue of $1.5 million (about Rs 6.8 crore) last year. Acer has invested about $9 million (about Rs 41 crore) in PointRed, which will become a wholly-owned subsidiary of Gemini once the acquisition process is completed.

PointRed has a manufacturing facility in Taiwan and a research and development centre in Bangalore. Kumar said the company would think of moving the manufacturing to India in the next six months based on the business needs.

Chennai-based Gemini Communications, which clocked a turnover of Rs 126 crore in the last financial year, expects to touch Rs 200 crore this financial year. The company has a presence in about 70 locations across the country. Some of its domestic customers include MTNL, VSNL, Airtel, BSNL and Idea Cellular, among others.