TechM buys Lightbridge Comm of US for $240 m.

Tech Mahindra is set to strengthen its presence in the network services segment by acquiring US-headquartered Lightbridge Communications Corporation (LCC) for $240 million. The deal takes the Mahindra group company a step closer to its 'stretch goal' of clocking $5 billion in revenue by 2015-end.

The acquisition will expand Tech Mahindra’s revenue from the US and bolster its ability to compete for contracts involving network technologies such as Voice-over-Long Term Evolution (VoLTE), network testing, and so on, said CP Gurnani, Chief Executive Officer and Managing Director of the Mahindra group company, in a conference call with newspersons.

'The LCC deal will give us access to 20-30 new clients in North America, Israel and Asia. Tech Mahindra's network consulting and operation services, in conjunction with LCC's network engineering and field services, will provide a wider range of services to our common client base,' said Gurnani. The company estimates the network services market to be worth $40 billion globally.

As part of the deal, the cash outflow from Tech Mahindra will be over $200 million as it intends to pay off the $85 million debt on LCC's books.


HBL