Inching closure towards Mukesh Ambani’s plans of offering high-speed wireless broadband services to Indian consumers, Infotel Broadband Services Pvt. Ltd owned by Reliance Industries Ltd(RIL) have purchased a 38.5% stake in Extramarks Education Pvt. Ltd. It is a Noida-based firm located at Sector 63 , which focus on digital learning ensuring easy accessibility to quality education.
On Tuesday after market hours, Infotel announced the acquisition through an affiliate company, Reliance Strategic Investments Ltd. Infotel, however did not disclose the amount it paid for the stake. Earlier, RIL in June 2010 bought Infotel Broadband Services after Infotel emerged the sole winner in a government auction of high-speed broadband spectrum in all 22 telecom zones in India.
The purchase gave RIL the means to roll out digital services; the investment in Extramarks will help in securing content. “The investment by Infotel will enable Extramarks to pursue its aggressive growth plans in further developing services and wider market penetration,” Infotel said in a statement on Tuesday.
Experts in the industries pointed out that companies looking to have a major presence in the fourth generation (4G) wireless technology, like RIL plans to, will progressively look at strategic acquisitions to offer a bundled package comprising a digital device, broadband connection, and content in the county.