Sterlite Technologies announces acquisition of global telecom software company Elitecore Technologies

Sterlite Technologies has entered into an agreement for the acquisition of a global telecom software product company Elitecore Technologies. The acquisition for an overall enterprise value of approximately Rs 180 crore which is all in cash deal .

This acquisition increases Sterlite’s telecom portfolio of offerings to its global customers. In addition to its current offerings which includes optical products and allied system integration services, Sterlite will now offer industry leading software solutions for operations support, business support and revenue management.

Sterlite has taken a strategic decision to capitalize on the broadband data network creation globally by offering a larger range of products and solutions by focusing on the high value product segments. This acquisition opens up access to a large multi-billion dollar market since Elitecore Technologies has its existing large and expanding market for optical products globally. This will significantly improve the overall growth opportunity for the company.

The business model of Elitecore offers complementary advantages to Sterlite’s current business model catering to the requirements of high speed data networks in India and globally. Sterlite is committed to growing its optical products business and has implemented expansion plans to increase capacity. It has also initiated to scale up revenue contribution from services and solutions and the addition of Elitecore’s operation will offer significant drives to the revenue contribution from services. Both Sterlite and Elitecore will supply to some of the largest telecom service providers globally and this acquisition will modify both companies to cross-sell their suite of offerings.

Elitecore is a leading provider of Operations Support Services and is majority owned by First Carlyle Ventures Mauritius. Today, Elitecore 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 area.

Elitecore is a profitable niche player with FY15 revenues of Rs 147 crore and Sterlite Technologies revenues in FY15 is Rs 3030 crore.

Today Sterlite Technologies is trading at Rs 82, around 2 per cent up