Arvind has signed a definitive agreement to buy Enkay, which is the market leader in India in the unified communication segment, multiple sources with direct knowledge of the matter told ET. The transaction is expected to be announced as early as this week. Arvind and Enkay declined comment. Mumbai-based investment bank Singhi Advisors was the sole advisor and process runner for the transaction, sources said.
Syntel was founded in 1989. Arvind is the flagship company of Ahmedabad-based Lalbhai Group, one of India’s largest textiles and fabrics companies.
The transaction will be a major step in Arvind’s diversification, sources said. Famous for introduction of denim and creating the ‘jeans’ revolution in India, Arvind owns brands such as Flying Machine, Newport and Excalibur and licensed international brands like Arrow and Tommy Hilfiger through its retail network.
Enkay holds the largest market share in enterprise segment of unified communications and collaboration solutions business and is currently the segment leader and preferred business partner in the Indian hospitality segment. With a revenue of over Rs 100 crore and a gross margin of around 25%, the 25 year-old Mumbai-based company has a pan-India distribution and service-cum-support infrastructure with eight branch offices serving both direct enterprise customers and channel partners across India.
Syntel and Enkay are the largest peers in the unified communications and collaboration solutions, both retail and enterprise segments in India, with Syntel addressing the markets through its large distribution channel.
The company serves over 4 million users through 300 channel partners pan-India, backed by seven branch…