Sterlite Tech to acquire UK’s Clearcomm for £15.5 million

Ayushi Kar Mumbai | Updated on July 22, 2021

Move to enhance presence across the UK and Europe

In a bid to globalise its network integration business, Sterlite Tech (STL) will acquire a UK-based network integration company, Clearcomm Group Ltd for £15.5 million. The acquisition will enhance the presence of its network solutions across the UK and Europe.

Clearcomm is a privately held company that provides end-to-end network integration solutions and capabilities in the UK. According to the press release, it has been generating profitable growth with revenues in the range of £20 million and growth rates of over 25 per cent over the past three years.

The transaction is structured to acquire 100 per cent of the share capital in 2 tranches. Tranche 1 entails the acquisition of 80 per cent of the share capital which will happen immediately (subject to customary pre-closing conditions), and is based on an enterprise value of £15.5 million. The balance 20 per cent shareholding will be acquired in 2023.

While STL possesses capabilities in a large scale of network solutions in 5G, FTTx and rural use cases, it will particularly focus on delivering 5G network solutions in the UK. Mihir Modi, CFO, STL, said along with existing clients of Clearcomm, STL will also be looking to bid for the £5-billion UK government project ‘Project Gigabit’ as well as other projects with private telcos.

Global vision

Stuart Evans and Richard Breffitt, Managing Directors, Clearcomm Group, said, “STL has a global vision for enabling digital transformation, and has set off on an exciting growth journey. We, at Clearcomm, are looking forward to adding value with our network integration specialisation and being an integral part of this growth story.”

Anand Agarwal, Group CEO, STL, said: “As digital infrastructure investments are increasing across the globe, STL is globalising its system integration solutions to help build these advanced networks. With the addition of Clearcomm’s network integration expertise to STL’s optical connectivity and data centre integration capabilities, we are uniquely positioned to help our customers deliver the most advanced, deep-fiberised digital networks.”

Published on July 22, 2021

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