Sterlite Tech is set to acquire Metallurgica Bresciana, an optical cable manufacturer based in Italy, for approximately euro 47 million or $55.26 million in cash.
The strategy of Sterlite Technologies is to have local manufacturing facilities or direct presence where it has clients.
Metallurgica manufactures special precision optical fibre cables and specialised copper cables for communication applications.
Metallurgica reported revenue of euro 48.7 million and net income of euro 4.2 million in 2017.
The acquisition will expand Sterlite Tech’s market presence in Europe. It will bring new tier-1 customers, augment product portfolio, and enhance flexibility and ability to better serve the European market.
“The acquisition of Metallurgica Bresciana will expand Sterlite Tech’s optical fibre cabling business by enhancing our access to key European markets and adding speciality cables to our products,” said Anand Agarwal, CEO of Sterlite Tech.
Sterlite Technologies has global scale manufacturing facilities in India, China and Brazil, and two software delivery centres in India.