India’s Sterlite Technologies is acquiring Italian specialised optical cable manufacturer Metallurgica Bresciana. Metallurgica designs and manufactures special precision optical fibre cables and also copper cables for various communication applications.
The 100% acquisition is an all cash deal for approximately €47m. Metallurgica reported revenues of €48.7m and net income of €4.2m in 2017. The deal is expected to be closed by the end of this month.
The capture will “significantly expand” Sterlite Tech’s market presence in Europe. It will bring new tier-1 customers, augment the company’s product portfolio and enhance flexibility to better serve the European market, said Sterlite.
“This deal will expand the firm’s optical fibre cabling business by augmenting our access to key European markets and adding highly complementary speciality cables to our product portfolio,” said Anand Agarwal, CEO of Sterlite Technologies.
“It aligns with our global supply chain strategy of having cabling facilities in close proximity to our key customers to serve their needs for next-generation networks.”
Sterlite has customers in more than 100 countries and has manufacturing facilities in India, China and Brazil, with two software delivery centres in India.
Earlier this year, Sterlite was awarded a major contract to design, build and manage the Indian Navy’s communications network. This is the first time that an integrated naval communications network at such a scale is being built in India.
The network, said Sterlite, is envisioned as a smarter network infrastructure with enhanced throughput, high-quality secure services and ease of network management. The scope of the deal requires Sterlite to design, build and manage the communications network for over a decade through its system integration capabilities.