Essar Group on Wednesday said it has completed the acquisition of AGC Networks, including closure of the offer representing 20% of AGC Networks? outstanding shares. The total deal size was of $61.4 million. The acquisition was done through Essar Capital Finance (ECF) and Essar Services Holdings (ESHL) as person acting in concert. Following the acquisition of Avaya?s 59.13% stake in AGC Networks for $44.5 million and the subsequent open offer, Essar?s stake in AGC Networks, previously known as Avaya GlobalConnect, rises to 79.13%.
Now, AGC Networks will function independently. AGC?s board has been reconstituted with Ayaya?s representatives stepping down, and SK Jha taking charge as MD along with joint managing director Anil Nair. The current management of AGC is expected to continue spearheading the business. Earlier in May, Essar had announced the acquisition of Avaya?s stake in AGC Networks, which is a leading player in the contact centre, unified communications, and networking space as a solutions integrator.
Edelweiss Capital is the sole adviser and is the manager to the open offer. Aegis MD & global CEO Aparup Sengupta said, ?Essar in a short span has become a key player in the SI space and would benefit immensely from the depth and width of expertise AGC Networks has. We have a definitive plan to grow this business as we aim for bigger chunks of customer spends.?
?AGC Networks, provides a great synergy with our systems integration business. Customers will now have an extended portfolio of services, that include unified communication, networking, information security, and applications, to chose from, ? he said.