Morgan Stanley-backed Indian telecom startup acquires Ubico in $13.4m deal

Indian telecom connectivity startup iBus Networks and Infrastructure said it acquired fellow telecom firm Ubico Networks in an all-cash deal worth 1 billion rupees (US$13.4 million).

Photo credit: Chatuporn Sornlampoo / 123RF

As part of the deal, iBus has acquired a 100% stake in Ubico, which includes the company’s in-building and in-campus neutral-host infrastructure business as well all related assets, according to a statement. Ubico founders have completely exited the company, while 33 of its 62 employee workforce will be joining iBus.

Founded in 2013, iBus offers last-mile connectivity solutions and acts as a neutral connectivity infrastructure provider for mobile operators. It deploys industrialized building system (IBS) infrastructure across 233 commercial and retail sites in India to help improve network capacity and coverage.

It recently raised US$21 million from Morgan Stanley India’s Infrastructure Fund, which it plans to use for expansion and the development of its platform.

“With Ubico’s acquisition, iBus Networks will lead the way in providing neutral IBS and distributed antenna system infrastructure-sharing with mobile operators, enabling them to serve their customers seamlessly,” said iBus CEO and managing director Ram Sellaratnam.

Ubico was founded in 2007, building and managing networks that cover 400 sites and 600 buildings and campuses in 42 cities in India. Its clients include hotels, hospitals, IT parks, commercial office spaces, malls, and educational institutions.