Chennai-based communication services provider Dhanus Technologies is set to acquire two US-based communications companies and a Chinese telecom services provider as part of its global expansion, a source close to the deal said. The company plans to raise up to Rs 800 crore to finance these acquisitions.
Dhanus has zeroed in on VPN and VoIP services firm Seawolf Technologies in China, a vehicle tracking services provider Hetrogenous and an NYSE-listed company serving the US market for satellite telephony and mobile virtual networking, the source said. The name of the third company could not be ascertained.
Dhanus plans to acquire 60-70% stake in each of these companies. The company has valued the Seawolf deal at $52 million and that of Hetrogenous at $40 million. Dhanus would use $100 million to acquire a majority stake in the NYSE-listed company.
When contacted, Dhanus director finance Muttu Krishnan said: “We are in negotiations with various firm in the US as well as in the Chinese market. We cannot comment on any individual deals.”
However, the source said the acquisitions are expected to add nearly 5-6 times the present revenues to the company and Dhanus would absorb all employees of the acquired companies. The company is in talks with a domestic company, MopiApps, a provider of satellite communication services, for a potential acquisition.
Dhanus would fund the acquisitions partly through raising debt and partly through an FCCB issue. The company had recently gone public to raise nearly Rs 113 crore.
Seawolf is one of the leading providers of VPN and VoIP services in China and has retail outlets which the company hopes to leverage with its acquisition. As for Hetrogenous, it would look to bring its products to India and other South-Asian markets along with continuing to serve its existing customer in the US. Dhanus already has the regulatory approval to offer such services in India.
Source: Economic Times