Sterlite Technologies acquires Elitecore Technologies for Rs180 crore

Pune-based Sterlite Technologies has acquired telecom software product company Elitecore Technologies for an enterprise value of about Rs180 crore in an all-cash deal.

The acquisition is in line with Sterlite's overall strategy of widening its telecom portfolio of offerings to its global customers with software solutions for operations support, business support and revenue management, the company said in a statement.

Elitecore, a provider of operations support services and business support services, is majority-owned by First Carlyle Ventures Mauritius. Elitecore was set up in 1999 by independent software profeionals.

Elitecore's FY15 revenue stood at Rs147 crore, and EBITDA of Rs16 crore and is cash positive on a net-debt basis.

''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,'' said Pravin Agarwal, vice chairman, Sterlite Technologies.

This acquisition opens up access to a large multi-billion dollar market which, when combined with the existing large and expanding market for optical products globally, significantly enhances the overall growth opportunity for the company, it added.

The transaction is expected to be value accretive by FY17 and is expected to be closed shortly subject to regulatory and statutory formalities.

Upon completion of the transaction, Elitecore Technologies is proposed to be merged into Sterlite Technologies.

Sterlite was advised by Cyril Amarchand Mangaldas on legal matters, PwC on financial diligence, EY on taxation matters and KPMG on transaction structuring matters. Carlyle and Elitecore Technologies were advised by NRS Advisors and Systematix Capital on transaction structuring, J Sagar Associates on legal matters and KPMG on taxation matters.

''Elitecore's growth will benefit immensely from Sterlite's market access, geographic reach, delivery capability and financial strength. My team looks forward to join 'Sterlite' and further our shared vision to deliver optimal solutions for our customers' evolving needs,'' said Nikhil Jain, managing director and chief executive officer of Elitecore Technologies.