Tech Mahindra has agreed to acquire U.S.-based Lightbridge Communications Corporation for about US$240 million, in a deal that is likely to make the Indian firm one of the biggest IT service providers for U.S. carriers.
With 5,000 employees and annual revenue of more than $400 million, Lightbridge is one of the largest providers of network engineering services for the telecommunications industry in North America.
Developing IT systems and applications for fixed and mobile operators is a $80 billion market worldwide. And Tech Mahindra has significantly boosted its network service portfolio in the last two years. Back in April, it acquired a majority stake in Fix Stream Networks, whose major client is the American networking giant Cisco.
McLean, VA-based Lightbridge has a track-record of having helped to build 350 networks and design more than 350,000 cell sites for more than 400 customers worldwide.
“With Networks increasingly becoming all IP-based and Virtual, software will play a key role in managing the networks of the future,” stated Tech Mahindra in a press release.
“This acquisition is a defining moment for Tech Mahindra and the network services sector. We will now be the largest and most comprehensive provider of technology services to Communications Service Providers,” said CP Gurnani, MD & CEO of Tech Mahindra.
Analysts say Tech Mahindra can now create a strong offering for telecom carriers by combining its network consulting, integration and operations services into Lightbridge’s network engineering and field services.
“Having Tech Mahindra’s breadth of services to provide advanced managed network services coupled with its size and scale, will help us increase the performance of our customers’ ever-evolving networks,” said Kenneth Young, CEO of LCC.