Tech Mahindra Limited is an Indian multinational provider of IT services, networking technology solutions and business processing outsources to the telecommunications industry. Tech Mahindra is an India’s fifth largest software services exporter. On Thursday, Tech Mahindra has signed an agreement to acquire US based LCC for a big deal $240 million. This acquisition is largest in abroad and the second largest by Tech Mahindra after Satyam Computers.
Lightbridge Communications Corporation (LCC) is a US based service provider, Headquartered in McLean, Virginia in which it is one of the world’s largest global providers of network engineering services to the telecommunications industry. LCC is having more than 5000 employees and LCC’s broad expertise can power a network, delivering 2G, 2.5G, 3G and 4G networks that push best practices to new levels.
In a conference call with reporters, the Executive Vice Chairman of Tech Mahindra Vineet Nayyar said total cash outflow for the deal is expected to be between US $200-220 million as LCC has a shareholder debt of about US $85 million, some part of which Tech Mahindra may pay later. We expect network services to be a major growth engine for our organization. Subject to regulatory approvals, the transaction is expected to close by the fourth quarter of 2014-15”.
With this acquisition, Tech Mahindra intends to address the growing market opportunity as telecommunications companies and enterprises are accelerating the network upgrade cycle. We will now be the largest and most comprehensive provider of technology services to communications service providers.