TietoEnator acquires Fortuna Technologies

Finland-based information technology company TietoEnator Corporation (TE) has acquired Fortuna Technologies Private Limited of Hyderabad for $29 million (Rs 119 crore) in an all-cash transaction, which was closed on Monday.

Fortuna, which has 300 employees, provides research and development services and develops turnkey solutions for major European and Asian mobile device manufacturers of 3G handsets.

The acquisition supports TE's service portfolio of telecom and media that covers R&D services, consulting IT system development and integration.

Established in 1996, Fortuna has focused on R&D for mobile devices since 2004. It posted a turnover of Rs 43.34 crore in 2006-07 and paid dividend to the tune of Rs 21 crore in the past three years. Including the dividend, the return on investment to founders works out to Rs 140 crore, company's founder chairman, TC Ashok, told mediapersons.

"We are already a leading R&D services provider for telecom. After this acquisition, we will be in a very strong position in the market," TE telecom and media senior vice-president, Bengst Moller, said.