Syntel Telecom acquires two units of Enkay Technologies

MUMBAI: Syntel Telecom Ltd, a unit of Arvind Ltd, has signed a deal to buy two telecom divisions of Enkay Technologies (India) Pvt Ltd, two persons aware of the development said. Mumbaibased investment bank Singhi Advisors was the sole adviser in the transaction. The deal value could not be ascertained.

Both companies operate in the so-called unified communications market. While Syntel distributes audio and videoconferencing products, among others, from multinationals such as Alcatel-Lucent, Cisco and NEC, Enkay is a technology provider. The deal will help Syntel offer enterprise communications solutions, one of the two persons cited above said on the condition of anonymity.

Among Enkay’s three businesses, Syntel will buy two—unified communications and audiovisual system integration—while integrated security solutions will remain with Enkay, the second person said, also on the condition of anonymity.

Emails sent to Dayal Hemrajani, chairman and MD of Enkay Technologies and a spokesperson for Arvind Ltd were not answered.

Syntel, which started operations in 1989 as a CDoT (Centre for Development of Telematics) licensee for digital public and private switching equipment, has leveraged its distribution infrastructure in the small and medium enterprises segment. The firm’s major customers include the railways, Fortis Hospitals, SBI Life, Federal bank, PepsiCo, Godrej, Ashok Leyland, Flipkart and Oglivy.

Enkay offers integrated communication solutions—IP telephony, contact center, data networking, IT, audio visual system integration and video conferencing to IP surveillance and security solutions. It has eight offices and over 220 employees.