Essar to come out with an open offer
Diversified conglomerate Essar Group has agreed to acquire Avaya’s entire 59.13% stake in AGC Networks for $44.5m or INR20.62bn, or Rs 245 a share, subject to customary Indian regulatory requirements and completion of the open offer.
AGC Networks, earlier known as Avaya GlobalConnect, is a converged communications offering provider focused on the India and Australia market.
The acquisition would be done through Essar Services Holdings (ESHL). Essar Group affiliate will also make an open offer for an additional 20% stake according to SEBI Takeover Regulation.
S K Jha, president of SI Business at Essar, said: “With this acquisition, Essar will gain deep expertise in the ‘enable’ block of experience management that Essar embarked upon through its worldwide expansion drive. Now customers will have the ability to have unified communication and experience management under one roof.”
Avaya said that the sale of its AGC Networks stake will help them focus on the development of the Avaya business in India, and on the growth and extension of the channel coverage model through their channel program, Avaya Connect. AGC Networks is expected to remain a key channel partner in serving customers in the Indian market and in Australia.
Jangoo Dalal, managing director of Avaya India, said: The AGC Networks relationship remains key to Avaya’s success in India and Australia – both through the period of this transaction and beyond. In India we work together to serve some of the country’s leading organisations spanning multiple business sectors, and we look forward to continuing to work with AGC Networks as a trusted and well established business partner.