The Hindu Business Line : Bharti buys Max Group's VSAT biz for Rs 33 cr

The all-cash deal would take Bharti to the number two spot in the VSAT industry after Hughes Escorts Communications. The move is aimed at taking advantage of the broadband policy announced recently, which relaxed the service norms for VSAT operators.

The agreement between Bharti Infotel, a 100 per cent subsidiary of Bharti Tele-Ventures and Max Group, involves acquiring 100 per cent equity stake in C Max Infocom and its wholly owned subsidiary Comsat Max. The two acquired companies recorded revenues of over Rs 50 crore for the financial year ended March 31, 2004.

VSAT is a satellite-based communication which is highly effective in transmitting data to remote and rural areas. The new broadband policy allows VSATs to be used for offering high speed Internet also.

The acquisition involves Bharti Tele-Ventures taking over all the assets and liabilities of the acquired companies, including the VSAT Hubs in Mumbai and Delhi, along with 4,300 installations spread across the country. In-addition, Max's data centre located in Delhi along with 130 telecom professionals would also come into the Bharti fold.

According to Mr Badri Agarwal, President, Bharti Infotel Ltd, "The acquisition will make Bharti amongthe largest players in the VSAT service industry and would result in huge synergistic benefits arising due to integration of the two organisations. With a new data centre and hubs in cities such as Delhi, Mumbai and Bangalore being connected with over 8,500 VSAT locations in the country, this would provide Bharti with the necessary scale and presence to offer integrated telecom business solutions to corporates."

Mr Analjit Singh, Chairman, Max India, said, "The divestment from Comsat Max is in keeping with our vision to focus on the core areas of life insurance and healthcare. For Bharti, this will complement its presence in telecom and enable it to offer integrated communication solutions to corporate clients. With the divestment of Comsat Max, Max India's restructuring exercise is now complete," he added.

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