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Tanla Solutions Closes Acquisition of Karix Mobile
Monday 15 April 2019

15 April 2019 - India-based cloud communication providers Tanla Solutions Ltd (NSE: TANLA) (BSE: 532790) has completed the acquisition of 100% shareholding of Karix Mobile Pvt Ltd and its wholly owned subsidiary Unicel Technologies Pvt Ltd from Banyan Investments Ltd, a company owned by funds affiliated with GSO Capital Partners L.P., the company said.

Consideration for the acquisition was approximately Rs.340 Crores (USD 49.097m), comprising Rs.112 Crores in cash; Preferential Allotment to Banyan of 2.20 Crores Equity Shares in Tanla at a Face Value of Re.1 only, at a rate of INR 56.79 per share totaling Rs.125 Crores; and Tanla assuming the debt on Karix's book of Rs.103 Crores.

This acquisition is being funded by Tanla with cash on balance sheet.

Post-acquisition, the shareholdings (on a fully diluted basis) of Tanla would be; Promoters, 31.2%, and GSO: 14.6%.

As a result of the acquisition, Karix has become a wholly owned subsidiary of Tanla (and Unicel will remain a subsidiary of Karix), effective April 10th, 2019.

As a result of the preferential allotment to Banyan, Banyan will hold an observer seat on Tanla's board of directors.
Tanla announces the appointment of Alex Howell (managing director at GSO) as observer on Tanla's Board.

Tanla started its journey as the new millennium set in with a small group of mobile messaging experts, with base in Hyderabad, India, to create a world-class messaging service.

Currently, Tanla is one of the largest cloud communication providers, handling over 90bn business communications annually.
Details
Date Published: 15/04/2019
Target: Karix Mobile Pvt, Unicel Technologies
Country: India
Deal Size: 49.097m (USD)
Sector: Telecommunications
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Vendor: Banyan Investments Ltd
Buyer: Tanla Solutions
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