Kavveri Telecom Buys Spain's Rymsa Telecom
Telecom equipment maker Kavveri Telecom has acquired Spanish antenna maker Rymsa Telecom from Radiacion y Microondas SA in a move that will strengthen its existing sales channels for group firms in Europe and Latin America and also enhance its product portfolio, the company has said on Wednesday.
Although the deal amount has not been spelt out clearly, Kavveri will invest â‚¬20 million (approximately Rs 134 crore) in Rymsa Telecom.
Rymsa manufactures and distributes antennas and components for the telecommunications industry worldwide. Its key clientele includes operators like Telefonica, Orange, Claro, Movistar, Telcel, Americamovil and key telecom equipment-makers like Nokia Siemens Networks and Ericsson. Rymsa has established its business in Europe and Latin America and is growing its market share in West Asia, Commonwealth of Independent States (CIS) and Africa.
With this acquisition, Kavveri expects its topline revenue to increase by â‚¬15 million in the first year and be EPS accretive.
"The timing of the Rymsa Telecom business acquisition coincides with the launching of 3G in India, where there will also be a major market for Rymsa's high performance antennas," said Shivakumar Reddy, Kavveri Telecom's managing director â€“ products.
This is Kavveri's fifth acquisition in the past four years. It acquired Til-Tek Antennae Inc. (a manufacturer of antennas for GSM, 3G, LTE and wireless technologies) in 2006, DCI Digital Communications (a manufacturer of RF products for different wireless technologies) in 2007, Spotwave Wireless Ltd (a manufacturer of repeaters for in-building solutions for GSM, 3G and LTE Technologies) in 2008 and Trackcom Systems International (a manufacturer of RF products and antennas for defence and space applications) in 2009.
Kavveri has recently raised Rs 39.86 crore through a QIP, which was partly to fund the deal in Europe.