Tanla Solutions today said it will acquire Karix Mobile and its wholly owned subsidiary Unicel from GSO Capital Partners at an enterprise value of Rs 340 crore. A Blackstone Company, GSO will receive a cash payment of Rs 112 crore that will be funded from Tanla's internal accruals.
Tanla Solutions said in a statement that GSO will be issued Rs 125 crore worth of its stock at Rs 56.79 per equity share and the balance Rs 103 crore will be taken over as debt.
Established in 2000, Karix is a mobile engagement and communications services provider. Known earlier as mGage India, it serves over 1,500 enterprise clients and had a revenue of Rs 540.24 crore in FY2018.
With combined revenues of Rs 1,170 crore in FY2018, Tanla will emerge as a leading cloud communications company in India providing formidable digital transformation strategies to its enterprise clients, the statement said.
Tanla said it expects cost synergies of about Rs 15 crore, over the next six quarters of operations. The transaction is expected to close by October 2018.
"Tanla is excited to be partnering with Blackstone as we continue to grow the company. Karix is an ideal strategic fit furthering our stated objective of adding diverse and high value customer base and business, capable technocrats and incremental financial scale," Tanla Solution Chairman and Managing Director Uday Reddy said.
The combined company will be a leading enterprise cloud communications provider with marquee customers in banking, insurance, automotive, DTH, retail, consumer products, e-commerce, m-commerce, and the government.
"On a fully diluted basis, GSO will own approximately 14.6 percent in Tanla, Promoters 30.6 percent, Employees 5.6 percent and Public shareholding 49.2 percent on completion of the acquisition," the statement said.
GSO will have an observer seat on Tanla's board, it added.
The statement noted that promoters will have to subscribe to 7.9 million shares to retain their pre-acquisition shareholding of 30.6 per cent and the agreed price for subscription to shares is Rs 40, subject to SEBI regulations and shareholders approval.