Deal to help tech firm add $600 mn

AGC Networks Limited, an Essar Group technology firm, through its wholly-owned subsidiary, has completed the acquisition of Black Box Corporation, a leading digital solutions provider in the U.S. to strengthen AGC’s presence and offerings to 25 countries across six continents.

The acquisition will also help add $600 million to AGC’s revenue, taking the company’s combined revenue to over $750 million, and global headcount to more than 4,000 people serving clients worldwide, said a company statement.

“We are excited to have Black Box become part of the AGC family. Black Box’s skilled teams and strong client relations with world-class enterprises and partners will allow us to better serve our global clients. In the immediate term, Black Box and its subsidiaries will continue to operate as they are. The two companies will together create a unique organisation that has the scale to deliver worldwide technical solutions to the largest and most complex corporations,” Sanjeev Verma, executive director and CEO of AGC Networks, and president and CEO of Black Box Corporation, said.

As a result of the earlier tender offer and the subsequent merger, which were completed, Black Box Corporation would become a private company and its shares of common stock would no longer be publicly traded. This would result in Black Box Corporation becoming a 100% subsidiary of AGC.

“A concrete benefit of this acquisition is the diversity of offerings, markets and clients between the two companies, with little overlap. This diversity presents tremendous opportunities for our clients, vendors and global team members,” Mr. Verma added. Deepak Kumar Bansal, chief financial officer, AGC Networks, said: “Adherence to financial discipline, governance and compliance standards is the highest priority across all theatres and geographies that AGC operates in. Along with these measures, rationalisation of working capital availability and sustained focus on cash flow management will ensure smoother and quicker turnaround for business operations delivering value to customers, stakeholders and shareholders.”