Tanla Solutions acquires Karix Mobile for Rs 340 crore

New Delhi: Tanla Solutions Ltd on Monday announced that it has acquired Karix Mobile for Rs 340 crore in a cash and stock transaction from GSO Capital Partners. The acquisition is expected to close by October this year and is subject to approval from Tanla’s shareholders and regulators.

Tanla Solutions has signed a definitive share purchase agreement to acquire 100 percent of Karix Mobile (formerly known as mGage India) and its wholly owned subsidiary Unicel from GSO Capital Partners, a Blackstone Company, at an enterprise value of Rs 340 Crore, the company said in a statement.

GSO will receive a cash payment of Rs 112 crore. This will be funded from Tanla’s internal accruals. Further GSO will be issued Rs 125 crore worth of Tanla stock at a price of Rs 56.79 per equity share. Tanla will take over a Debt of Rs 103 Crore.

On a fully diluted basis, GSO will own approximately 14.6 percent in Tanla, Promoters 30.6 percent, Employees 5.6 percent and Public shareholding 49.2 percent on completion of the acquisition. GSO will have an observer seat on Tanla’s board.

The Promoters have to subscribe to 7.9 Mn number of shares to retain their pre-acquisition shareholding of 30.6 percent. The agreed price for subscription to shares is Rs 40, subject to SEBI (ICDR) regulations and approval of shareholders.

GSO is entitled to pre-emptive rights in future allotment of capital, to enable GSO to avoid dilution.

Karix Mobile an 18-year-old global brand, has offices in four major Indian cities with over 1500 enterprise clients globally, and a revenue of Rs 540.24 crore in FY2018.