STL rises almost 4.5%

Sterlite Technology Ltd (STL) is doing well today. The stock rose higher at Rs.158.40, from its previous close of Rs.156.10 and went on to an intra day high at Rs.162.70, rising almost 4.5%.

The stock price is reacting to the news that Sterlite Global Venture (Mauritius), a wholly owned subsidiary of STL, has entered into definitive agreements to acquire a 100% stake in Impact Data Solutions Group.

This has been acquired at an enterprise value of Rs.105 crore. It is an all-cash deal financed by a combination of internal accruals and foreign currency debt instruments.

The Group, made up of Impact Data Solutions Limited, UK and its affiliate company, provides network infrastructure solutions to hyper-scale data centres and colocation providers.

As part of the transaction STL has acquired 80% of the shares of the Group in the first tranche and the balance 20% will be acquired over the next few years on an earn out model.