Tanla Solutions has acquired Karix Mobile for Rs 340 crore in a cash and stock transaction from GSO Capital Partners.
In a recent report ET Telecom has stated that Karix Mobile got acquired by Tanla Solutions on Monday. The acquisition happened for a sum of Rs 340 crore in cash and stock transaction from GSO Capital partners.
Funding and transaction
GSO will receive a cash payment of Rs 112 crore which will be funded from Tanla’s internal accruals. Further GSO will be issued Rs 125 crore worth of Tanla stock at a price of Rs 56.79 per equity share. Tanla will take over a debt of Rs 103 crore. GSO will own approximately 14.6 percent in Tanla and will be entitled to pre-emptive rights in future allotment of capital, to enable GSO to avoid dilution.
Karix Mobile has offices in four major Indian cities with over 1500 enterprise clients globally, and a revenue of Rs 540.24 crore in FY2018. Tanla expects cost synergies of approximately Rs 15 crore, over the next six quarters of operations. The acquisition is expected to close by October and is subject to approval from Tanla’s shareholders.
