Sterlite Technologies has acquired Elitecore Technologies, a telecom software product company, in a deal valued at about Rs 180 crore.
The Ahmadabad-based Elitecore, a provider of OSS – BSS solutions for telecoms, is majority owned by First Carlyle Ventures Mauritius. Elitecore Technologies will be merged into Sterlite Technologies.
“The transaction follows our strategy to undertake attractive M&A opportunities in the 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,” said Pravin Agarwal, vice chairman, Sterlite Technologies.
Elitecore has presence in telecom markets in South East Asia, Middle East & Africa, Eastern Europe and Latin America. Elitecore reported revenues of Rs 147 crore and EBITDA of Rs 16 crore in FY 2015. The company has been continuously profitable for the last seven years.
This acquisition expands Sterlite’s telecom portfolio of offerings to its customers – in addition to its optical products and allied system integration services. Sterlite will now offer software solutions for operations support, business support and revenue management.
Sterlite has implemented expansion plans to increase capacity of its optical products business. It has undertaken efforts to scale up revenue contribution from services and solutions and the addition of Elitecore’s operation will offer significant impetus to the revenue contribution from services.
“Elitecore’s growth will benefit immensely from Sterlite’s market access, geographic reach, delivery capability and financial strength,” said Nikhil Jain, MD and CEO of Elitecore Technologies.
