The Hindu Business Line : Mahindra British Telecom to acquire Axes Tech

MAHINDRA British Telecom (MBT), the joint venture between Mahindra and Mahindra (M&M) and British Telecom, is acquiring the Texas-based Axes Technologies, a global telecom solutions provider.

Started in the US in 1990, Axes Technologies offers solutions to telecom equipment vendors, carriers and service providers. The company has offshore development centres in Bangalore and Chennai with a combined headcount of close to 700 people.

Confirming the acquisition, sources said the deal size was likely to be $40-50 million. MBT is expected to formally announce the Axes deal on Wednesday.

The privately-held Axes Technologies offers services such as embedded and application software development, testing, hardware system design, product support, maintenance, network integration and traffic engineering of next-generation network among others.

Both Axes and MBT have common clients such as Alcatel among others. The acquisition of Axes is expected to enhance the scale of operations for MBT in Bangalore and also provide an entry in Chennai.

MBT, the eighth largest software exporter in India, reported 36 per cent increase in net profit to Rs 71.2 crore for the half-year ended September 2005, while revenues grew about 4 per cent to Rs 503.2 crore for the same period over corresponding previous year. Parent M&M plans to take MBT public over the next few months.

With over 7,000 people, MBT serves telecom equipment manufacturers, service providers, software vendors and systems integrators. Its global customers include Alcatel, Alltel, BT, Convergys, Ericsson, Marconi, O2 and Vodafone among others.

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Mahindra British Telecom to acquire Axes Tech