BDO-I2I and Avendus advise on Tejas Networks acquisition of Ethos Networks
Tejas Networks India (Tejas) has today announced its acquisition of Ethos Networks (Ethos), an Israeli company in the Carrier Ethernet domain. With this acquisition, Tejas would become amongst the first Indian companies to acquire an Israeli entity.
BDO-I2I and Avendus Capital were the financial advisors for the transaction.
Tejas is a leading telecom company in India specializing in the SDH/SONET area. Tejas looks to complete its Carrier Ethernet portfolio with Ethos Networks technology and be in a position to emerge as the market leader in India's growing market. Tejas’ acquisition of Ethos is a result of the latter’s recognition as a leading engineering and technology company out of Israel. Following this acquisition Tejas Networks will establish Tejas Israel as the Company's R&D center for its flagship products. The Israeli office will also act as center for sales and services for Europe.
Yossi Shussman, CEO, Ethos Networks, commented on the transaction, “Ethos Management Team and employees are excited about the opportunity to join forces with Tejas. This acquisition reflects the high level of synergy between the two companies, where the combination of Tejas’ market leadership position and appealing SDH portfolio with Ethos’s innovative Carrier Ethernet switch and Network Management portfolio, will enable Tejas to offer a unique and highly competitive Carrier Ethernet solution to its customers.”
Sanjay Nayak, CEO, Tejas Networks, expressed his enthusiasm for the transaction, “The combination of Ethos' unique technology and strong team will further enhance Tejas' technical leadership in the Metro Ethernet market. We have started working with Ethos in an OEM relationship. Given the positive feedback we got from our customers as well as strong synergy with Ethos customer base, a full integration was a natural transition for us. I am excited to have a R&D center in Israel, the hotbed for telecom technologies and innovation"
Amit Singh, Executive Director at Avendus Capital observed that, “This deal would firmly establish Tejas as the only Indian technology company with an R&D center in Israel and would also provide a line of sight to the government agencies supporting the Israeli Hi-tech industry. Tejas could now look to leverage its Israeli capabilities to develop a broader suite of products targeted at the global market.”
"This deal would mark the beginning of a flourishing Indo-Israeli business relationship”, added David Keynan, BDO-I2I Founder and CEO. “We have been working with the Avendus team to build the necessary infrastructure for Indo-Israeli M&A transactions. We hope that this deal will pave the way for many more transactions in this corridor."