Nortel to take equity stake in Sasken Technologies

By siliconindia staff writer   |   Thursday, 07 April 2005, 19:30 IST   |    2 Comments
Printer Print Email Email
MUMBAI:Nortel Networks will pick up equity stake in Sasken Communication Technologies Limited with an investment of $ 10 million. Nortel and Sasken have also signed an amendment to an existing services agreement under which they will continue to work together to develop new software and deploy Nortel networking solutions. Sasken has been a key supplier to Nortel since 1991, and is currently focused on supporting Nortel’s GSM (Global System for Mobile Communications) digital wireless and enterprise communications solutions. Sasken will also play a major role in training, technical support and other engineering services in Nortel projects in India. This investment strengthens Nortel’s strategic relationship with Sasken and aligns with Nortel’s objective to bring greater capabilities to customers in the critical emerging markets of India and the Asia Pacific region. Sasken plans to use this investment to fuel its growth through acquisitions. “Nortel has been an important customer of Sasken for the past 15 years,” said Rajiv Mody, Chairman and Chief Executive Officer, Sasken Communications Technologies Limited. “This investment is a re-affirmation of Nortel’s long and close relationship with Sasken. We believe that this investment and the expanded services agreement are key milestones in achieving our vision of becoming India’s leading telecommunication solutions provider.” “India is an important market for Nortel and Sasken has played a key role in Nortel’s R&D and market success. Strengthening our relationship with Sasken is an investment in our future, and provides Nortel with a stronger foothold to serve our customers in India and the Asia Pacific region,” said Brian McFadden, chief research officer, Nortel. "India is one of the fastest growing markets in the world,” said Ashoka Valia, Managing Director, Nortel India. “We are pleased and excited about the investment announcement. A close relationship with a leading local supplier like Sasken will provide further leverage for Nortel to be competitive in this market.”