New Call Telecom, a British internet service provider is in talks with Nextra Teleservices, a Delhi-based internet service provider for yet another acquisition. In a span of three months, this is the third acquisition the British company is eyeing in India as it plans to make an aggressive expansion in the rapidly-growing telecom industry.
Nextra Teleservices started in 2012 and presently provides broadband services to the residential sector and internet services to several enterprises in Delhi and the NCR. The acquisition is in tandem with New Call Telecom’s strategy to tap into the huge potential of growing broadband users in residential areas, small to medium-sized businesses, and SMEs.
A spokeswoman from New Call Telecom stated that the company is interested in this buyout as Nextra is into wireline segment that the buyer has been keen on, since a long time. However, president of Nextra Teleservices’ Kapil Dev Kumar commented saying that nothing has been finalized as of now. Though none of the financial details have been disclosed as of yet, a source reported that Nextra could be worth INR25-30 crore, which is taking into consideration its quarterly earnings of INR5.5 crore. The source further added that Nextra is looking at raising money to increase its base of operations.
In August 2014, New Call Telecom announced its plans to make an investment of INR617 crore in India. The earlier plan was to make strategic acquisitions of about four mid-sized telecom companies to poach into Wi-Fi, fixed line connectivity, and messaging segments.