IT services major Tech Mahindra is in discussions to acquire Bangalore-based niche telecom solutions player Sloka
Telecom.
People close to the situation said the 5- year-old tech start-up Sloka Telecom has put a price tag of Rs 30-35 crore but there is no agreement on a final transaction.
Sloka provides solutions in the areas of fixed WiMax, Mobile WiMax and 3G. The company claimed that its patent pending technology architecture gives price advantage in making smaller and cheaper telecom base stations primarily finding application in the semi-urban and rural areas.
When contacted, a spokesperson for Tech Mahindra said: “As a policy, we do not comment on market speculations.” Sloka Telecom CEO Sujai Karampuri refused to comment on the development.
Sloka Telecom, with centres in Bangalore and the US, has been looking at multiple options which include an outright sale of the company. It has held similar such discussions with other entities in the past, sources added. For Tech Mahindra, a potential deal would help build its solutions portfolio as it looks to enlarge its reach in the telecom segment.
It could also give them the platform to partner with global telecom majors in getting into the developing markets. Increasingly, global telecom players are looking at cost effective technology solutions to address developing markets such as India. Tech Mahindra in 2005 had acquired the Bangalore-headquartered Axes Technologies which was in the telecom infrastructure space.
Tech Mahindra has been scouting for niche telecom acquisitions which could provide them the technological edge in a crowded space of telecom vertical. It has also been looking at generating higher revenue from its solutions segment vis-a-vis information technology services.
Telecom.
People close to the situation said the 5- year-old tech start-up Sloka Telecom has put a price tag of Rs 30-35 crore but there is no agreement on a final transaction.
Sloka provides solutions in the areas of fixed WiMax, Mobile WiMax and 3G. The company claimed that its patent pending technology architecture gives price advantage in making smaller and cheaper telecom base stations primarily finding application in the semi-urban and rural areas.
When contacted, a spokesperson for Tech Mahindra said: “As a policy, we do not comment on market speculations.” Sloka Telecom CEO Sujai Karampuri refused to comment on the development.
Sloka Telecom, with centres in Bangalore and the US, has been looking at multiple options which include an outright sale of the company. It has held similar such discussions with other entities in the past, sources added. For Tech Mahindra, a potential deal would help build its solutions portfolio as it looks to enlarge its reach in the telecom segment.
It could also give them the platform to partner with global telecom majors in getting into the developing markets. Increasingly, global telecom players are looking at cost effective technology solutions to address developing markets such as India. Tech Mahindra in 2005 had acquired the Bangalore-headquartered Axes Technologies which was in the telecom infrastructure space.
Tech Mahindra has been scouting for niche telecom acquisitions which could provide them the technological edge in a crowded space of telecom vertical. It has also been looking at generating higher revenue from its solutions segment vis-a-vis information technology services.
Article Source:http://economictimes.indiatimes.com/Infotech/Tech-Mahindra-in-talks-to-buy-Sloka/articleshow/4251709.cms
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