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Our Bureau

Bangalore , Dec. 14

DECCANET Designs Ltd has been acquired by Flextronics for an undisclosed amount in an all cash deal. The Bangalore-headquartered Deccanet is a telecommunication focussed design company providing software and hardware design services, products and intellectual property in core areas of telecom and test automation. It expects to close this fiscal at Rs 30-35 crore in revenues, according to a senior company official.

Following the acquisition, early investors, including GVFL Ltd, TDA Capital Partners and Intel Capital, have exited the company offloading the "reasonable stake they held", the official told Business Line. The management structure would continue at present with an integration package currently being worked out. Later, Deccanet would be integrated into Flextronics to become the design house for telecom software and hardware products.

"Flextronics will combine the design capabilities we have to offer with its manufacturing facilities in China to provide complete OEM solutions'', the official said.

While Deccanet has 300 people on board currently, plans are afoot to expand the team significantly since the acquisition would provide it with a wider canvas to foray into the global market.

The acquisition ties in with Flextronics' aim to make India its design hub. Earlier this year, the company had announced the acquisition of a 55 per cent stake in Hughes Software and complete acquisition of the US-headquartered Emuzed, a mobile multimedia technology solutions firm that has R&D centres in Chennai and Bangalore.

"This provides us a global platform to extend and create high value for our customers,'' Mr Venkat Rajendran, Co-Founder and CEO of Deccanet, was quoted as saying in a release.

More Stories on : Mergers & Acquisitions | Software

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