TietoEnator acquires Indian telecom R&D supplier
By siliconindia | Tuesday, 18 September 2007, 07:00 Hrs
Bangalore: TietoEnator has signed an agreement to acquire Fortuna Technologies in India. The transaction is planned to be closed on September 17. The company that has approximately 300 employees, provides R&D services and develops turnkey software solutions for major European and Asian mobile device manufacturers of 3G handsets. Fortuna is a key partner to one of the world leading mobile device platform vendors. The acquisition supports TietoEnator Telecom & Media's strategy to build high and extremely qualified spearhead competence for telecom R&D and provides an excellent complement to its current customer base and services portfolio. The purchase price is approximately EUR 21 million. The impact on TietoEnator's net sales for 2008 is expected to be approximately EUR 11 million and profitability of the acquired company higher than TietoEnator's average level. Ari Vanhanen, President of TietoEnator Telecom and Media said, "The combined efforts of TietoEnator and Fortuna will make an even stronger platform for further growth together with our key customers. Additionally, Fortuna gives us an excellent platform for future growth in India and other parts of Asia and is a strategic addition to our global delivery model." Fortuna, which is based in Hyderabad was originally founded in 1996 by its current owners, and since 2004 has focused on R&D for mobile devices. TC Ashok, Founder and President of Fortuna Technologies, said "This enables us to take our business global and expand our reach to TietoEnator's customer base. Fortuna has established itself as a strategic partner to key platform vendors and manufacturers, with around 300 experts under one roof capable of delivering complete 3G software for mobile devices. Together with TietoEnator we will now have a world leading portfolio of services and software solutions." TietoEnator's business area Telecom and Media has a broad service portfolio that covers R&D services, consulting, IT system development and integration for the telecom and media industry. The company operates in close partnership with its global customers, assisting them in the development of their products and business processes. TietoEnator's Telecom and Media business area currently employs over 5,700 experts in 15 countries.