Carlyle exits India's Elitecore to Sterlite

While the size of the all-cash deal has not been disclosed, a statement gave the enterprise valuation of Elitecore as INR1.8 billion ($27 million). Carlyle acquired its stake in the company in 2007 for $10.3 million.

Sterlite's acquisition of Elitecore furthers several of its goals. The latter's operations in Europe, Latin America, the Middle East and Africa offer Sterlite a way to expand its own presence in those regions.

In addition, the companies' businesses are complementary. Elitecore's approach is asset-light, while Sterlite focuses on manufacturing. Elitecore's software products also require little overlap with Sterlite's hardware operations. This means they can target the same telecom service providers without threatening each other's business.

"Sterlite has built a solid reputation with leading global telecom companies in some of the world's most challenging business environments," said Elitecore's Managing Director and CEO Nikhil Jain. "Elitecore's growth will benefit immensely from Sterlite's market access, geographic reach, delivery capability and financial strength."

Carlyle is an active investor in India. Its commitments this year include the purchase of a 37% stake in Metropolis Healthcare and an investment of an undisclosed amount in pipe manufacturer DEE Piping Systems. In addition, IIFL Wealth Management, the financial services firm backed by Carlyle and Fairfax Holdings, recently launched a seed venture fund of up to INR10 billion.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Industrials
• Technology
• Exits
• India
• The Carlyle Group
• Technology
• TMT
• manufacturing
• Exit
• Trade sale