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GTL to snap up Singapore firm

Mumbai, Feb. 24: GTL Limited (formerly Global Tele-Systems Ltd), a leading network engineering and IT services company, today announced its plans to acquire Singapore-based IT firm Redington group in a $ 95-million cash-and-stock.

As per the deal the GTL group will acquire the Redington Group comprising Redington India Ltd (RIL), Redington Pte Ltd, Singapore (RSL) and Redington Gulf FZE, Middle East (RGM). Of the $ 95 million, $ 45 million is payable in stock swap and the balance $ 50 million in cash. This deal has been on valuations conducted by Deliotte Haskins & Sells and ICICI Securities and Finance Company Ltd.

Consequently, Redington would become a significant shareholder in GTL’s equity capital. The estimated revenue of the Redington Group for the financial year ending March 31, 2003, is expected to be over Rs 2,500 crore. Of this, revenue from its Indian operations is likely to be over Rs 1,400 crore. The consolidated revenue of the combined entities would be over Rs 3000 crore (approx $ 625 million) and the combined workforce would be in excess of 3000.

Manoj Tirodkar, CMD & CEO of GTL, said: “Our core competency of project management, capability to execute large projects and ability to provide cost-effective business solutions would be enhanced with this deal. It will also provide opportunities to cross-sell services.”

R Srinivasan, managing director of Redington group, said, “Redington focuses on relationship with vendors and IT infrastructure management services. It is also a neutral service provider. An excellent, well connected infrastructure with good managerial and technical capabilities, strong processes have ensured satisfied customers.”

Explaining the synergies arising from the move, GTL said that Redington strengths are in supply chain management of hardware and software from multinational vendors and maintenance thereof. GTL can complement these strengths by bringing in its professional services expertise in the areas of technical helpdesk, network management, system integration and application maintenance.

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