DC Advisory advised Optotec S.p.A. on its sale to Sterlite Technologies Limited

Background

• Optotec S.p.A. (Optotec), headquartered near Milan, Italy, is a leader in the development, manufacture and distribution of a complete range of optical interconnect products for the telecommunications and FTTH networks across Europe, such as closures, racks, boxes and related accessories
• Optotec owns one commercial subsidiary - Optotec International SA - located in Mendrisio, Switzerland, with a focus on the Eastern European market
• Optotec is a leading player in its reference market and is an approved supplier of the key telcom operators (eg OpenFiber and Telecom Italia)
• In May 2019, Optotec was approached by Sterlite Technologies (Ltd), a listed Indian-based group engaged in the provision of telecom products and solutions

Process

• DC Advisory (DC) was engaged by Optotec to act as financial advisor to provide sell-side M&A advice on the sale of a 100% stake of Optotec to Sterlite Technologies
• DC provided comprehensive financial advisory services to Optotec throughout the sale process including:
  • process strategy and tactics;
  • due diligence coordination;
  • deal structuring;
  • financial modelling and valuation;
  • support in negotiations; and
  • advice on transaction documentation.

Outcome

• Following a detailed due diligence process, the parties were close to signing the Sale & Purchase Agreement in March 2020
• However, due to Covid-19 the transaction was put on hold
• Negotiations restarted in May 2020 and following the strong performance of Optotec during 2020, and an intensive negotiation phase, the Sale & Purchase Agreement was signed on the 31 October to acquire a 100% of Optotec - at a higher consideration than the original March position