Sterlite Tech to acquire UK-based network integration company Clearcomm Group

Broadband technology company Sterlite Technologies on Thursday said it will acquire Clearcomm Group, a leading Network Integration company in the UK, to further globalise its system integration business at an enterprise valuation of around Rs 160 crore.

Sterlite Tech will acquire 100 per cent of the share capital of Clearcomm Group in two tranches, the company said in a regulatory filing.

"We will be paying around Rs 125 crore for acquiring 80 per cent stake (in Clearcomm Group in the first tranche)," STL Group chief financial officer Mihir Modi told PTI.

The company will acquire 80 per cent stake in Clearcomm Group in the first tranche at enterprise valuation of around Rs 158 crore and rest of the 20 per cent in 2023.

"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 (STL) group CEO 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 (GBP 20 million) and growth rates of over 25 per cent over the past 3 years," the filing said.