Sterlite Technologies Announces Acquisition Elitecore Technologies - Wire & Cable India
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Sterlite Technologies Announces Acquisition Elitecore Technologies

This acquisition will be for an overall enterprise value of approximately Rs 180 cr in an all-cash deal

September 22, 2015

Sterlite Technologies Limited has entered into a definitive agreement for the acquisition of Elitecore Technologies Private Limited, a global telecom software product company. Elitecore is a leading 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. Elitecore was established in 1999 by highly experienced software technocrats with over 20 years of experience. Today, it is ranked amongst one of the leading product-centric IT companies from India that has a global customer base.

Elitecore has a rich product portfolio, robust technology platform, strong customer track record and excellent partnerships. Over the last few years, Elitecore has made significant inroads in both Indian and global telecom operators and has expanded its geographic footprint to include South East Asia, Middle East & Africa and lately Eastern Europe and Latin America. Elitecore is a profitable niche player with FY 15 revenues of Rs 147 cr and EBITDA of Rs 16 cr and is cash positive on a net debt basis.

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 industry leading software solutions for operations support, business support and revenue management.

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Pravin Agarwal, Vice Chairman, Sterlite Technologies Ltd

This acquisition will be for an overall enterprise value of approximately Rs 180 cr in an all-cash deal. 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 is proposed to be merged into Sterlite Technologies.

Commenting on the transaction, Pravin Agarwal, Vice Chairman, Sterlite Technologies Ltd., 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.”

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Nikhil Jain, MD & CEO of Elitecore Technologies

Commenting on the transaction, Nikhil Jain, MD & CEO of Elitecore Technologies said, “We are very excited about what is a completely transformational development for our Company. 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. “

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