AGC Networks Limited, (BSE: 500463 and NSE: AGCNET), the trusted go-totechnology-solution-integrator, today announced that its wholly-owned subsidiary has completed the acquisition of Black Box Corporation (NASDAQ: BBOX), a leading digital solutions provider in the US.
The combination with Black Box will substantially strengthen AGC's presence and offerings to 25+ countries across six continents. The acquisition will also help add US$600 million to AGC's revenue, taking the company's combined revenue to over US$750 million, and global headcount to more than 4,000 people serving clients worldwide.
"We are excited to have Black Box become part of the AGC family," said Mr. Sanjeev Verma, Executive Director & CEO of AGC Networks, and President & CEO of Black Box Corporation. "Black Box's skilled teams and strong client relations with world-class enterprises and partners will allow us to better serve our global clients. In the immediate term, Black Box and its subsidiaries will continue to operate as is. The two companies will together create a unique organization that has the scale to deliver worldwide technical solutions to the largest and most complex corporations."
A concrete benefit of this acquisition is the diversity of offerings, markets and clients between the two companies, with little overlap. This diversity presents tremendous opportunities for our clients, vendors and global team members. We strongly believe in the philosophy of think globally (as our clients do), but act locally where our relationships exist. Our expanding local presence will be among our defining strengths and "Think Globally, Act Locally" will be the cornerstone of our vision as we move forward.
As a result of the earlier tender offer and the subsequent merger, which were completed, Black Box Corporation will become a private company and its shares of common stock will no longer be publicly traded. This will result in Black Box Corporation becoming a 100% subsidiary of AGC.
Mr. Deepak Kumar Bansal, Chief Financial Officer, AGC Networks, said "Adherence to financial discipline, governance and compliance standards is the highest priority across all theatres and geographies that AGC operates in. Along with these measures, rationalization of working capital availability and sustained focus on cash flow management will ensure smoother and quicker turnaround for business operations delivering value to customers, stakeholders and shareholders."
Shares of AGC Networks Limited was last trading in BSE at Rs.103.1 as compared to the previous close of Rs. 108.35. The total number of shares traded during the day was 6487 in over 189 trades.
The stock hit an intraday high of Rs. 113.5 and intraday low of 102. The net turnover during the day was Rs. 698023.