The News Scroll 12 May 2020  Last Updated at 6:03 pm | Source: PTI

Sterlite Tech keen on tech, capability buys with attractive valuation

Sterlite Tech keen on tech, capability buys with attractive valuation
outlookindia.com
1970-01-01T05:30:00+0530
New Delhi, May 12 (PTI) Data network solutions provider Sterlite Technologies on Tuesday said that it will look at small capability buys or ''bolt-on acquisition'' which come with attractive valuations.

But the company, which in September last year announced the acquisition of IDS Group, a data centre network infrastructure design and deployment firm based in the UK, asserted that it will examine such opportunities "cautiously and judiciously".

"Sterlilte Tech has grown through a judicious mix of organic capacity expansion as well as inorganic acquisitions. We have done three large acquisition in last 2-3 years and we continue to look at those companies which can add to our profile and through which we can serve customers better," Sterlite Tech Chief Financial Officer (CFO) Anupam Jindal told PTI.

"We are looking at small capability buys, we continue to look at that," he said.

Jindal added that while the company continues to look at opportunities "very actively", it doesn''t have anything currently in the pipeline.

He said that the acquisition of IDS had given the company access to marquee customers, and allowed it to participate in data centre opportunities globally.

"There are things we are developing inhouse through our technology investments and there are opportunities we keep looking at...if a company has marquee customer base or great tech or capability, which we can leverage to add to ours, we are looking at those," he said.

The company could look at potential opportunities in India or outside, but the criteria would be how it fits into STL''s overall strategy of positioning itself as an end-to-end tech service provider to customers.

"The key criteria for us is how it fits into our overall strategy of becoming end-to-end player, which we are becoming, and how can it help us accelerate or get a unique position. Technology and capability have to be of global nature, it cannot be just for a particular market," Jindal said.

He asserted that the company would proceed "cautiously and judiciously" while exploring such opportunities.

Asked if the valuations looked attractive in the current market, Jindal said, "we can see a lot of companies coming under liquidity pressure while they are technologically sound...they may be under stress due to the COVID-19 backdrop.

“We will look for those kinds of companies definitely very cautiously, judiciously. We want to take calibrated step in that, but at the same time be ready for those kinds of opportunities having very attractive valuation if we can find them." PTI MBI MR MR


Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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