Essar group company AGC Networks Ltd is set to acquire Dubai-based Fujisoft group of companies to expand and increase presence and offerings in West Asia and Africa.
AGC Networks has entered into a share sale agreement with Abizer Leelwalla Sajjad Hussain and Albert Raj Naricitti Peter to acquire all shares of Fujisoft Technology LLC, along with its associated companies in the United Arab Emirates (UAE), for 9.8 million dirham ($2.6 million at the current exchange rate).
The target companies include Fujisoft Security Solutions LLC and Fujisoft Technology LLC, both based out of Dubai, and Abu Dhabi-based Fuji Soft Technology LLC.
Target companies have a consolidated revenue of 46.46 million dirham ($12.65 million) for the 12 months ended December 2019.
They are engaged in the business of providing services in relation to information technology solutions, computer system & communications equipment software trading, internal communication network installations & maintenance, web designing, computer systems housing services and related and ancillary services.
All three companies will be lapped up by AGC Network through its indirect subsidiary Black Box Holdings Ltd, which itself was acquired by AGC two years back.
According to a disclosure from the AGC Network, 50% of the consideration is payable at the time of closing.
The transaction is subject to customary closing conditions and regulatory approvals. It is likely to close within six months.
By Monday noon, AGC Networks was trading at 243.35, up 4.89% on a bullish Mumbai market.
AGC Networks reported a 2018-19 revenue of Rs 306.8 crore.