HFCL acquires 15 per cent stake in Nivetti Systems

HFCL announced that it has signed a share subscription agreement with Nivetti Systems for 15 per cent of its diluted equity paid-up capital for a total cash consideration of around Rs 15.95 crore, keeping in line with the thrust on the addition of next-generation products and solutions in its portfolio for telecom network and cyber security system space.

The said acquisition, which is estimated to be completed by October 2020, will result in an increase in the HFLC's offering of best-in-class networking and cyber security products and solutions, thus, resulting in the growth of its telecom, IT, cyber security, and surveillance business.

Nivetti Systems is a networking and cyber security company. Its products include IP or MPLS Routers, Ethernet Switching portfolio that includes L2/L3 Switches, carrier ethernet and cloud management, cloud networking, and cyber security products and solutions. It reported a total turnover of Rs 1,13,69,756 in FY19.

HFCL Limited is a company operating as a designer, manufacturer, assembler, and seller of telecommunication equipment. It produces equipment, such as Electronics Rural Automatic (ERAX), Electronic Private Automatic Branch Exchange (EPABX), transmission equipment, modems, Integrate Digital Network Systems (ISDN) component sub-system, wireless telephone, cellular radios, and multi-access rural radio telephone system with their accessories and associated equipment.

On Thursday, the stock closed at Rs 17.55, up by 1.45 per cent or Rs 0.25 per share. The 52-week high is recorded at Rs 25.30 and the 52-week low is recorded at Rs 16.75.