IT giant, Tech Mahindra, has acquired US network service company, Lightbridge Communications, for $US240 million.
The transaction is expected to close by the fourth quarter of Tech Mahindra's 2015 fiscal year.
The acquisition seeks to address a rapidly growing market opportunity as telcos and enterprises accelerate the network upgrade cycle, according to a company statement.
"With Networks increasingly becoming all IP-based and Virtual, software will play a key role in managing the networks of the future," a statement said.
"Tech Mahindra’s deep software skills, in combination with LCC’s world-class network engineering capabilities, will further differentiate Tech Mahindra’s offerings to both our Communications and Enterprise customers.
"The acquisition of LCC will strongly augment the systematic investments that Tech Mahindra has been making in its network services business over the last few years.
Tech Mahindra’s network consulting, integration and operations services in conjunction with LCC’s network engineering and field services will enable the company to offer a full range of network services to both communications service providers as well as to the ecosystem of partners who cater to the Communications sector.
It will bring the capability to set up and rollout networks quickly to the A/NZ region and will expanding the integration of Telco Services.
Tech Mahindra senior vice president, head of Telecom APAC, Jason Ong, said the $US240 million acquisition of Lightbridge Communications Corporation (LCC) would have significant implications for Tech Mahindra's telco-related businesses and operations in the Asia Pacific.Read more: Optus cuts 157 jobs
"Amidst intense competition among regional telcos to increase market share, ARPU and to offer additional services, network engineering is become a critical differentiator," he said.
"The acquisition positions Tech Mahindra as the pre-eminent partner for network services in the region and globally.”
Tech Mahindra, chief executive and managing director, CP Gurnani, said the acquisition was 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," he said.Read more: Mahindra Satyam gets fully merged into Tech Mahindra
"Our 25 years of rich experience in delivering technology solutions to enterprises and communications service providers globally will be significantly strengthened by this acquisition. ”
“Over three decades, LCC has grown to become the largest independent provider of wireless engineering services.