Financial Daily from THE HINDU group of publications
Thursday, Nov 17, 2005
Financial Daily from THE HINDU group of publications Thursday, Nov 17, 2005 |
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Telecommunications Info-Tech - Mergers & Acquisitions MBT buys Axes Tech for $54 m Our Bureau
Mr Vineet Nayyar (right), CEO and Managing Director, MBT, and Mr Paul Pandian, founder and President, Axes Technologies, at a press conference in Bangalore on Wednesday. - - G. R.N. Somashekar
Bangalore , Nov 16 THE Pune-based Mahindra-British Telecom (MBT) on Wednesday formally announced the acquisition of Axes Technologies for $54 million in an all-cash deal funded from internal accruals. Axes Technologies, with expected revenues of $30 million for the current fiscal, provides research and development, software and support to telecommunication product and equipment makers such as Alcatel and Motorola. Axes Technologies employs 800 people and has a subsidiary in Texas, US and development centres in Bangalore and Chennai. MBT, the joint venture between Mahindra & Mahindra and British Telecom, is the country's eighth largest software exporter. As part of the deal, MBT will integrate all Axes facilities, clients and employees, said Mr Vineet Nayyar, CEO and Managing Director of MBT. "Axes is primarily a service-oriented company, though we are taking over engineering. We are now moving into next-generation telecom protocol expertise. The merger will allow us to capitalise on MBT's dominant presence in the telecom sector," said Mr Paul Pandian, Founder and President of Axes Technologies. "MBT paid $6 per share for the nine million shares of Axes Technologies," he added. MBT plans to increase the total headcount to 10,000 employees over the next six months from the present 7,500. Mr Nayyar said that MBT, which clocked revenues of $217 million last fiscal, expects the combined revenues at the end of the current financial year to be $280 million.
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