Sterlite Technologies announced yesterday after market hours that its subsidiary has entered into definitive agreements to acquire 12.8% stake in Israel-based ASOCS.

ASOCS provides solutions for enterprise and telco-networks.

The company said that the acquisition of the shares of investee company is done at a mutually agreed pre-money valuation. The said valuation is not disclosed herein due to reasons of confidentiality.

The cash consideration will be paid in two tranches - one as on date and one in May 2020.

The joint solution of STL and ASOCS will empower mobile network operators to build best-in-class networks and enable them to build vendor-neutral, autonomous mobile networks using 5G radio, SDN, NFV and AI technologies.

This news has been taken very positively by the market. The stock opened today with a gain of almost 3% at Rs.127.70, going up to an intraday high at Rs.129.80, a rise of 4.5%.