Sterlite Technologies acquires UK-based IDS Group

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Published: September 26, 2019 1:19:33 AM

Sterlite Technologies indicated in a stock exchange filing on Wednesday that its wholly-owned subsidiary Sterlite Global Venture (Mauritius) is in the process of acquiring 100% stake in UK-based Impact Data Solutions (IDS) Group.

The group has presence across Europe and its 2018 turnover stood at £8 million. The group has presence across Europe and its 2018 turnover stood at £8 million.

Sterlite Technologies indicated in a stock exchange filing on Wednesday that its wholly-owned subsidiary Sterlite Global Venture (Mauritius) is in the process of acquiring 100% stake in UK-based Impact Data Solutions (IDS) Group.

The transaction is an all-cash deal financed by a combination of internal accruals and foreign currency debt instruments at an enterprise value of approximately £12 million, representing 100% of share capital of the IDS Group, Sterlite Technologies (STL) said in a statement.

“The transaction is structured to acquire 100%. Out of this, 80% has been acquired and the remaining 20% will be acquired based on an earn-out model, over the next few years,” it said.

The privately-held IDS Group provides design and deployment offerings for hyper scale data centres. The group has presence across Europe and its 2018 turnover stood at £8 million. The company said the acquisition solidifies its position in the cloud and data centre market and brings access to two of the top global cloud providers into its customer pool.

“This acquisition brings Sterlite Technologies a step closer towards its journey of expanding its addressable market to $75 billion by 2023,” it said. Anand Agarwal, Group CEO, STL, said the massive growth in data transmission and high bandwidth applications are driving a large need for edge compute and localised data centre, which makes this an extremely attractive space for investment.

STL also believes that the acquisition provides opportunities for cross-leveraging customers, expanding geographically, and adds “inside” data centre solutions to STL’s offerings portfolio.

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