Sterlite Technologies, which manufactures products for the telecom market, has agreed to acquire 100% stake in Italy-based optical cable maker Metallurgica Bresciana for 46.67 million euros ($54.3 million or Rs 373 crore) in a cash deal.
In a stock exchange disclosure, Maharashtra-based Sterlite said that it would make the acquisition through its wholly-owned Italian subsidiary Sterlite Technologies S.p.A.
The acquisition of Metallurgica Bresciana will expand Sterlite Techs optical fibre cabling business by augmenting our access to key European markets and add highly complementary speciality cables to our products portfolio, said Anand Agarwal, chief executive officer of Sterlite Technologies.
The acquisition is being funded through a combination of debt instruments and internal accruals, the disclosure added.
It expects to complete the transaction over the next fortnight.
Sterlite Technologies rose nearly 9% to close at Rs 315.20 per share on the BSE.
Incorporated in 1987, Metallurgica Bresciana designs and manufactures special precision optical fibre cables and specialised copper cables for various communication applications. It has operations in Italy and China.
The companys turnover stood at 48.7 million euros in the calendar year 2017.
Sterlite Technologies designs, builds and manages digital networks and has customers in more than 100 countries.
The companys offerings include optical communication products, system and network-integration services, and telecom software.
It has manufacturing facilities in India, China and Brazil, with two software delivery centres in India.
The companys consolidated revenue from operations stood at Rs 3,205.49 crore in the financial year 2017-18, up from Rs 2,593.56 crore in the previous financial year. Profit for the fiscal rose to Rs 364 crore from Rs 217 crore in 2016-17.
In September 2015, Sterlite Technologies had acquired Elitecore Technologies Pvt. Ltd, a telecom software product company, for an enterprise value of around Rs 180 crore ($27.4 million).