Pune based Sterlite Technologies is set to acquire Elitecore Technologies, a provider of operations and business support services for an overall enterprise value of around Rs180 crore in an all-cash deal.
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.