Sterlite Technology to acquire UK's Clearcomm Group in overseas push

New Delhi: Broadband technology company Sterlite Technologies Ltd. has announced its plans to acquire Clearcomm Group, a US-based network integration company, at an enterprise valuation of Rs 160 crore.

The acquisition is part of the company's plans to further globalise its system integration business.

According to a regulatory filing Thursday, Sterlite Tech will acquire 100% share capital of Clearcomm Group in two tranches. The company will acquire 80% stake in the first tranche at an enterprise valuation of around Rs 158 crore and rest in 2023.


"We will be paying around Rs 125 crore for acquiring 80% stake (in Clearcomm Group in the first tranche)," Sterlite Technologies' group chief financial officer Mihir Modi said.

"With the addition of Clearcomm's network integration expertise to STL's optical connectivity and data centre integration capabilities, we are uniquely positioned to help our customers deliver the most advanced, deep-fiberised digital networks," Sterlite Technologies' group chief executive Anand Agarwal said.

The acquisition will enhance the presence of STL Network Integration solutions across the UK and Europe.

"Clearcomm has long standing relationships with marquee customers in the UK, with over a decade of experience. It has been generating profitable growth with revenues in the range of Rs 200 crore and growth rates of over 25% over the past three years," according to the regulatory filing.