Sterlite buys Elitecore Technologies for Rs 180 crore

MUMBAI: Sterlite Technologies, manufacturer of optical fibers, telecommunication cables and power transmission conductors, has entered into a Rs 180-crore definitive agreement for the acquisition of Elitecore Technologies, a global telecom software product company.

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. Upon completion of the transaction, Elitecore Technologies will be merged into Sterlite Technologies.

This acquisition widens Sterlite’s telecom portfolio of offerings to its global customers – in addition to its current offerings comprising optical products and allied system integration services, Sterlite will now offer software solutions for operations support, business support and revenue management. It has taken a decision to capitalize on the broadband data network creation globally. Elitecore’s portfolio enables Sterlite to serve Telco operators’ mission critical applications to drive scalability.

Pravin Agarwal, Vice-Chairman, Sterlite Technologies, said, “The transaction follows our strategy to undertake attractive M&A opportunities in the entire telecom value chain. Elitecore has had an excellent performance record, with its management and employees having a wealth of experience and expertise in developing solutions for telecom companies. 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.”

Nikhil Jain, MD and CEO of Elitecore Technologies said, “With its product-led innovation, cost leadership, geographic reach and proven delivery capability, Sterlite has built a solid reputation with leading global telecom companies in some of the world’s most challenging business environments. Elitecore’s growth will benefit immensely from Sterlite’s market access, geographic reach, delivery capability and financial strength.”

Elitecore is a provider of Operations Support Services/Business Support Services and is majority owned by First Carlyle Ventures Mauritius, whose affiliate is advised by The Carlyle Group.

Over the last few years, Elitecore has made inroads in both Indian and global telecom operators and has expanded its geographic footprint to include South East Asia, Middle East and Africa and lately Eastern Europe and Latin America.

Elitecore is a player with FY15 revenues at Rs 147 crore and EBITDA of Rs 16 crore and is cash positive on a net debt basis.