Flextronics will also have to make an open offer to buy an additional 20 percent stake from the shareholders of Hughes that will cost 82 million dollars, a joint statement said late Tuesday.

Hughes provides software systems for fixed and mobile phone networks for both voice and data. The company earned revenues of 80 million dollars in the financial year ended March.

It has two development centres in India; one in Gurgaon, located on the outskirts of the national capital, New Delhi, and another in the information technology hub of Bangalore.

The company also has a centre in Germany's Nuremberg.

"This partnership should offer significant opportunities to cross-sell our respective products and services to a very complimentary telecom customer base," said Michael E. Marks, chief executive officer of Flextronics.

The deal is one of the largest in India's booming information technology sector

SPACE.WIRE