WiMAX player, Telsima is reportedly in talks with US based Harris Stratex Networks for majority stake sale (but as far as we know, it’s an acquisition).
The acquisition stake amount, as reported in ET stands at $55 million – 2x times the annualised revenue figures.
Telsima, was one of the high profiled startups from the dotcom era and received funding from Vinod Dham, Tushar Dave, NEA and Intel Capital.
Some perspective and Questions:
- Telsima raised nearly $92 Million dollars in nearly four rounds of funding.
- The entire deal looks like it is a distress sale.
- Clearly looks like the team did not get anything out of this. Even investors might have lost some money. Clearly it is not a deal that makes Telsima proud of it.
“While the valuation appeared attractive in the current market conditions, it might not have offered any significant upside to the investors.” – ET
- What does this mean of Vinod Dham’s companies. Most of them are floundering. Not a single success story so far. Even his association with Satyam is not a great thing to talk about.
Is it a good thing for WiMAX or Wireless Infrastructure companies? Would new investors invest in such big stories anymore? Clearly looks like this will send shivers down their spine.