Tanla Solutions Acquires Karix Mobile For Rs 340 Crore

Cloud communication firm Tanla Solutions has acquired Karix Mobile, a mobile based engagement and communication provider, for Rs 340 crore. Karix Mobile was previously known as mGage India Private Limited and it re-branded to the new name in Februrary this year.

The Hyderabad born Tanla Solutions will also acquire Karix Mobile’s subsidiary Unicel. Both these units are part of and managed by GSO Capital Partners, an investment fund from the Blackstone Group.

As per the transaction details, GSO will receive a cash payment of Rs 112 crore and another Rs125 crore worth of Tanla stock at a price of R 56.79 per equity share.

At the end of FY 2018, Karix Mobile has a revenue of Rs 540 crore and has offices in 4 cities in India. The company serves more than 1500 enterprise clients globally.

“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. Our combined entity will unarguably be a CloudCommunications behemoth with innovation led offerings in the Digital space for our partners and clients alike,” said Uday Reddy, CMD of Tanla Solutions.

“This strategic acquisition leverages Tanla’s strong telecom carrier partnerships and Karix’s enterprise selling expertise to build a rationalized yet comprehensive solutions portfolio that can quickly generate revenues & reduce go-to-market timelines,” Tanla Solutions said in a statement.

“We are very pleased with the announcement of this deal. “The combined strength of Karix and Tanla will afford our enterprise customers a single source for a comprehensive suite of communications services, and an assurance that their future emerging requirements will be met timely,” said Karix CEO Jay Seth.

Tanla Solutions said the transaction is expected to close by October 2018. Post closure of the acquisition, the firm expects to save Rs 15 crore in direct expenses over the period of next six quarters.

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