Sterlite Technologies Ltd has agreed to acquire the UK-based Impact Data Solutions Group for an enterprise value of around £12 million ($14.85 million, or Rs 105.55 crore at current exchange rates).
Pune-based Sterlite Technologies said in a stock-exchange filing it has acquired 80% of IDS Group in the first stage and will buy the balance acquired over the next few years on an earn-out model.
IDS is a data centre design company. It provides network infrastructure services to data centres and co-location providers.
The Indian digital technology company said it is buying IDS through wholly owned subsidiary Sterlite Global Venture (Mauritius).
Sterlite said the acquisition solidifies its position in the cloud and data centre market, and that the move would help it in its mission of expanding its addressable market to $75 billion by 2023.
IDS caters to communication services providers, enterprises and co-location providers. The company was founded in 2009 and has 21 employees, serving markets in Europe and the UK.
Anand Agarwal, chief executive officer at STL Group, said the localised data centre segment was seeing a massive growth in data transmission and high bandwidth applications. “It is our endeavour to be more relevant to our customers’ data network creation needs across the globe,” Agarwal said.
Separately, Ben Parker, CEO at IDSG, said the acquisition would help the company to fast-track its expansion by leveraging STL’s platform.
STL, which has over 3,300 employees, provides system-based solutions including connectivity, network services and software to customers. The group also owns 273 patents, and has a presence in India, China, the US, Europe and West Asia.