Sterlite Technologies acquires Elitecore Tech for Rs 180-crore

NEW DELHI: Optic fibre and telecom cable maker Sterlite Technologies has agreed to acquire Elitecore Technologies in a deal that puts the telecom software product firm’s enterprise value at Rs 180 crore.

Sterlite Technologies expects the acquisition to help it look beyond the infrastructure vertical and build new capacities to fully tap opportunities from projects like Digital India and smart cities in the local market, and to expand to markets where Elitecore has a strong presence. “With Elitecore, we now get network management, operations and billing support as well as customer management.

It creates full end-to-end offering for us, and creates a deeper and longer customer engagement for us,” Sterlite Technologies chief executive Anand Agarwal told ET.

The transaction is expected to be completed shortly and Sterlite Technologies said it would pay in cash. Enterprise value is usually arrived at by adding up the market value of equity and debt as well as any minority stake or outstanding preferred shares, and then deducting the cash and investments the target company holds.

Nikhil Jain, managing director and CEO of Elitecore, told ET that the company was looking at inorganic growth and funds to expand into markets like Europe and Latin America.

“We also felt the need to increase our offerings, and required investment for the R&D,” he said. The acquisition will allow Elitecore to scale up and help it in customer acquisition, Jain said.