IT services firm, Tech Mahindra, is in discussions to acquire Bangalore-based niche telecom solutions player, Sloka Telecom.
According to sources, the five-year-old tech start-up, Sloka Telecom, has put a price tag of Rs30-35 crore. However, no agreement has been reached on a final transaction.
Sloka provides solutions in fixed WiMAX, Mobile iMAX and 3G and its patent pending technology architecture gives price advantage in making smaller and cheaper telecom base stations primarily finding application in the semiurban and rural areas.
Sloka Telecom, with centres in Bangalore and the US, has been looking at multiple options including outright sale. It has held similar discussions with other entities in the past, sources added.
For Tech Mahindra, a potential deal would help build its solutions portfolio as it looks to enlarge its reach in the Telecom segment.
It should be noted that Tech Mahindra has been scouting for niche telecom acquisitions that could provide it with a technological edge in the crowded telecom vertical.
We maintain a BUY recommendation on Tech Mahindra.