Friday, 21 November 2014

Tech Mahindra buys Lightbridge Communications Corporation

Tech Mahindra is an Indian Multinational provider of Information Technology, networking technology solutions, and Business Support Services to the telecommunications Industry. It is a part of Mahindra Group. In recent news, the company acquires US based network solutions company Lightbridge Communications corporations for $240 Million.

This is the biggest deal of company outside India, will significantly strengthen its presence in the US, and is expected to add 20-30 more clients in the list. The deal will be finalized by the end of this fiscal and is funding the acquisition via internal accruals. Mahindra group looks to reach its stretch target of $5 Billion in revenue by 2015.
Headquartered in McLean, Virginia, LCC is one of the world’s largest independent global providers of network engineering services to the telecommunications industry, with more than 5000 employees in over 50 countries. With annual revenue of more than $400 Million, LCC has built 350 networks and designed more than 350,000 cell sites for over 400 customers worldwide. The acquisition positions Tech Mahindra as an important partner for network services globally.

This is the largest acquisition so far in this year in the IT services space. In July, India’s third largest software services firm WIPRO had acquired the IT services division of Canadian company Atco for US $195 Million. In September this year, Cognizant said it will acquire US based Trizetto Corporation for US $2.7 Billion in an all cash deal.

Rajendra Singh started LCC in 1983. With its acquisition, Tech Mahindra will become the only Indian IT services provider in the networking services management space, which is dominated by the like of Alcatel Lucent and Ericsson. In April 2013, Tech Mahindra had acquired the lab assets and operations of the Type Approval Lab, which was part of Sony Mobile Communication’s internal test function. 

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