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Flextronics set to buy Deccanet
By siliconindia
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Tuesday, 06 July 2004, 19:30 IST
BANGALORE: Singapore-based Flextronics, the world's largest electronics manufacturing company which recently acquired Hughes Software, is on the prowl again. The company is learnt to have finalised a deal to buy-out Bangalore-based telecom products design company Deccanet Designs for an undisclosed sum, reports an Indian daily.
Sources familiar with the development, however, indicated that the company could be valued in the range of Rs 60-80 crore. A Deccanet Designs official while confirming talks between Flextronics, denied that any deal had been struck with the Singapore firm.
Sources added that despite a topline of over Rs 15 crore, Deccanet has been valued quite aggressively due to some international properties. Intel Capital and a Templeton fund have investments in the Bangalore-based firm, which they seek to exit through this deal.
The company with a headcount of around 300 skilled labour force has offices in San Jose and multiple channel partner relationships in key strategic markets. Deccanet's select clientele include industry leaders like Motorola, Broadcom, Intel, Infineon, Huawei, OKI Telecom, Lycium, Hitron, Valiant and ICS.
Sources said that Deccanet plans to market its niche product Orion/ET in global markets and expects to notch Rs 40 crore revenues during the current fiscal. Flextronics has recently signed an agreement in Singapore with Nortel Networks whereby Nortel Networks will divest certain optical, wireless, and enterprise manufacturing operations and optical design operations to Flextronics.
Flextronics will be acquiring a design group with broad experience in telecommunications and optical networks, with extensive knowledge of optical products and processes,'' Michael Marks, Chief Executive Officer of Flextronics had stated during the occasion Following the Hughes Software buy-out, investment bankers said that Flextronics has drawn an aggressive investment strategy for India with a $80-100 million kitty.
They added that talks are currently on with select software firms and are at various stages of negotiation, including with Chennai-based Futuresoft. The multinational firm provides design, engineering and manufacturing services to companies such as Cisco Systems, Hewlett-Packard, IBM, Nokia and Ericsson. It has annual revenues of US$14.5 billion.