PUNE, India -- Sterlite Technologies Limited ("Sterlite") has entered into a definitive agreement for the acquisition of Elitecore Technologies Private Limited ("Elitecore"), 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 Rs147cr and EBITDA of Rs16cr and is cash positive on a net debt basis. The company has been continuously profitable for the last 7 years and the financial performance would continue to improve given the strategic decision to build its service capabilities and focus on investing in right growth product categories.
Rationale and transaction highlights
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."
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.My team looks forward to join 'Sterlite' and further our shared vision to deliver optimal solutions for our customers' evolving needs."
Commenting on the transaction, Shankar Narayanan, Managing Director of The Carlyle Group, and Co-Head of the Carlyle Asia growth capital team, said, "Elitecore is a great example of a win-win corporate-private equity relationship where Carlyle has partnered with a management team with passion, resourcefulness and integrity to build a world-class telecom product and solutions business. I am pleased that Carlyle has been able to leverage its global resources and network of portfolio companies to help Elitecore achieve superior growth and transform the business. We are proud to have been associated with the Company and the management team and wish them great success."