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Our Bureau

New Delhi, Sept. 13 Communications software company Aricent (formerly Flextronics Software Systems) on Thursday announced the acquisition of US-based consulting, system integration and software development firm DataLinx, for approximately $30 million.

Aricent said that the acquisition of Tarrytown, New York-based company was in line with its global expansion strategy to establish locations close to clients and pursue leading communications talent across the world.

DataLinx, founded in 1992, adds a team of 400 consultants and developers based in the US to Aricent.

“Aricent and DataLinx’s combined offerings will help service providers drive revenue growth and profitability in a complex landscape of emerging technologies and heightened customer expectations. Combined, Aricent and DataLinx, will deliver full lifecycle solutions to wireless, wireline, cable and satellite service providers,” Mr Ash Bhardwaj, CEO, Aricent, said.

In addition, the two companies would offer a combined line of service provider products that includes applications for network capacity planning, subscriber management, billing mediation, service activation, customer relationship management and workforce management.

This is Aricent’s second acquisition since it got renamed, after private equity firm KKR last year bought a majority interest in the firm from design and manufacturing outsourcing specialist Flextronics, which currently retains a minority stake.

In May this year, Aricent bought the cellular base station development group of Nokia Siemens Networks located at Southwood, near Farnborough, England.

According to Mr Sanjay Dhawan, Chief Strategy Officer of Aricent, the latest takeover would be supported through internal accruals.

“A large part of our operations are focused on research and development services to telecom original equipment manufacturers and this acquisition is in line with our intention to strengthen our telecom service provider offerings in areas such as billing, and operational support systems, architecting and deployment of solutions,” he said.

Aricent has also announced the opening of a new 3G and 4G wireless development and testing centre in Monterrey, Mexico. Monterrey is known for its highly-qualified, educated workforce and is a recognised centre for software development and in the telecom sector.

“The new Aricent development centre at the University of Nuevo León enables us to leverage the skilled resources in Mexico and will increase the adoption of our cutting edge communications software solutions in the Americas,” said Mr Bhardwaj. The company expects the centre to employ over 500 software professionals in a few years.

More Stories on : Mergers & Acquisitions | Overseas Investments | Software

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