Tech Mahindra to acquire US network solutions firm Lightbridge for $240mn

Tech Mahindra has signed a definitive agreement to acquire network services provider Lightbridge Communications Corp (LCC) for an enterprise value of about $240 million. The transaction, expected to close by the fourth quarter of 2015 fiscal year, is subject to regulatory approvals.

The acquisition positions Tech Mahindra as the preeminent partner for network services globally.

The acquisition will help Tech Mahindra to address the growing market opportunity as telecommunications companies and enterprises accelerate the network upgrade cycle.

''This partnership is another significant step towards the globalisation of Tech Mahindra as we welcome a diverse workforce of over 5,000 network professionals across five continents and more than 50 countries. We expect network services to be a major growth engine for our organisation,'' said Vineet Nayyar, executive vice chairman at Tech Mahindra.

Headquartered in McLean, Virginia, LCC is an independent global provider of network engineering services to the telecommunications industry, with more than 5,000 employees in over 50 countries. LCC, with annual revenues of more than $400 million, has built 350 networks and designed more than 350,000 cell sites for over 400 customers worldwide.

The acquisition of LCC will augment the systematic investments that Tech Mahindra has been making in its network services business over the last few years.

''This acquisition is a defining moment for Tech Mahindra and the network services sector. We will now be the largest and most comprehensive provider of technology services to communications service providers. Our 25 years of rich experience in delivering technology solutions to enterprises and communications service providers globally will be significantly strengthened by this acquisition,'' said CP Gurnani, MD & CEO, Tech Mahindra.

Ernst & Young was Tech Mahindra's diligence partner and Dechert LLP was Tech Mahindra's legal advisor for this deal. Jefferies LLC acted as sole financial advisor to LCC and Covington & Burling LLP served as LCC's legal advisor.