U.S. firm Harris Stratex to acquire Telsima

By siliconindia   |   Friday, 06 February 2009, 18:23 IST
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Bangalore: Harris Stratex Networks, a U.S-based wireless provider, is planning to acquire a majority stake in Santa Clara-headquartered India focused WiMax solution firm Telsima backed by marquee valley investors, for $55 million, reported The Economic Times. Telsima has a manufacturing and software development hub in Bangalore. Apart from clients like RCom and Tata Teleservices in India Telsima is also working with telecom networks in African and Russian markets. Moreover the company has exposure to several e-governance projects in India. The firm's existing investors include Vinod Dham, Tushar Dave, NEA and Intel Capital. A source close to the development said that the firm was being valued at roughly 2x times the annualised revenue. While the valuation appeared attractive in the current market conditions, it might not have offered any significant upside to the investors. "Harris had evaluated around three similar firms, but Telsima emerged as the preferred partner," the source said. However, on the deal a Telsima spokeswoman said, "At this juncture, we have no comments to make as Telsima does not entertain speculation." Both Harris Stratex and Telsima had partnered last year for offering Wi-Max equipments to phone firms in the U.S. The acquisition will enable Harris to offer Telsima's solutions in the U.S. and to address growing markets in India, Russia and Africa.