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Tech Mahindra to buy U.S.-based network services operator for $240 million
November 20, 2014 / 11:48 AM / 3 years ago

Tech Mahindra to buy U.S.-based network services operator for $240 million

(Reuters) - Software services company Tech Mahindra Ltd (TEML.NS) said it would buy Virginia-based network services operator Lightbridge Communications Corp for $240 million to boost its presence in the United States.

An employee sits at the front desk inside Tech Mahindra office building in Noida on the outskirts of New Delhi March 18, 2013. REUTERS/Adnan Abidi/Files

The acquisition, expected to close by the fourth quarter, will add 20-30 new clients to Tech Mahindra, Chief Executive Officer C.P. Gurnani said on a call.

He also said all of Lightbridge’s 5,700 employees would join Tech Mahindra, taking the company’s total headcount to about 100,000.

“We expect network services to be a major growth engine for our organisation,” Executive Vice Chairman Vineet Nayyar said in a statement. As of now, the telecommunications business accounts for around 45 percent of the company’s revenue.

Tech Mahindra did not say how much its revenue will be boosted by the deal.

Reporting by Nivedita Bhattacharjee in Mumbai; Editing by Anand Basu

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