New Call Telecom Planning to Buy India-based Nextra Teleservices
Published By : 04 Feb 2015 | Published By : QYRESEARCH
UK-based telecom company New Call Telecom is planning to buy Indi-based Nextra Teleservices as the British company looks to expand its presence aggressively in India’s rapidly growing telecom industry.
Nextra Tele Services is an internet service provider company which was founded in 2012, and is currently operating in the field of broadband services for leased line internet services and homes in the Indian Capital Delhi.
Nextra Tele Services’ proposed acquisition by New Call Telecom is reportedly one of New Call’s strategies to target the rising demands for broadband internet in households and small as well as medium sized companies.
A New Call spokesperson in India stated that Nextra Tele Services is one of those few Indian companies operating in the wireline or broadband sector that New Call is in talks with for an acquisition. The talks have been confirmed by Nextra’s president Kapil Dev Kumar, but he also stated that nothing has been confirmed so far about the entire process.
No data about the valuations was also discussed by the two companies. However, a person familiar with the matter stated that Nextra is a young company and it is yet to make profits. Currently, it can be valued at nearly 25-30 crore Indian rupees, considering its quarterly revenues of nearly 5.5 crore Indian rupees.
Over the past few years, Nextra is in the process of trying to raise funds for expanding its operations, said the person. In August 2014, New Call Telecom had declared that it would invest nearly US$100 million in the Indian market in its initial bid to enter the rapidly expanding telecom market of India. It had also stated that it would invest this money for acquisition of four mid-level Indian telecom companies to enter in the fields of Wi-Fi, fixed line connectivity and messaging domain.