Tikona Digital Networks Pvt. Ltd, a wireless broadband service provider backed by private equity firms, is acquiring the networking services arm of the HCL Group. Tikona won licensed broadband wireless access (BWA) spectrum in five circles out of the 22 in the auctions last year. HCL Infinet Limited is a wholly owned subsidiary of HCL Infosystems which provides connectivity and IT managed services to organisations across India. No financial details about the transaction were disclosed.
Tikona is backed by PE firms Goldman Sachs Investment Partners, Everstone’s Indivision, Oak India Investments and L&T Infrastructure Finance Co. Ltd who together hold 74% stake. It is headed by Prakash Bajpai, President and CEO at Reliance Communications, where he was responsible for the Broadband, Enterprise, Data Center, PCO and DTH businesses of the company.
HCL Infinet has more than 400 enterprise customers in industries including aviation, fast-moving consumer goods (FMCG) and manufacturing and distribution (M&D).
HCL Infosystems is a hardware, services and ICT systems integration and distribution company with revenues of $2.6 billion. The company said the deal is a part of its strategy to strengthen its core business and expand into identified growth areas. HCL Infinet started its ISP/NLD operations in the year 2000 and holds an all license to operate as a Class “A” ISP, ITSP and NLD service provider.
The share price of HCL Infosystems closed at Rs 108.75, down marginally by 0.18%.
“HCL Infinet is today poised to take on a different growth trajectory and is best suited to further strengthen an enterprise like Tikona focused on delivering ISP & NLD services in the fast emerging telecom industry. HCL Infinet has also completed two acquisitions in the past few months to expand its geographical presence. This step can be viewed as the company further consolidating and strengthening its IT service offerings”, said Harsh Chitale, Chief Executive Officer, HCL Infosystems Ltd.