Hughes Software Systems Ltd., a communications software services provider, said it signed a definitive share purchase agreement with shareholders of Tenet Technologies Pte. Ltd. in an all cash deal.

"The agreement is the first step in an acquisition and is subject to the approval of regulatory authorities," said Jay Vikram Bakshi, senior manager, corporate communications of Hughes Software Systems.

"Hughes will acquire (a) 100 percent-stake in Tenet Technologies and Tenet will become a fully-owned subsidiary of Hughes Software," Bakshi told AFP. "The balance sheets of both the firms will be consolidated within the next two quarters."

Tenet, a Bangalore-based firm, is focused on providing solutions in the areas of Internet protocol, broadband, telecommunications and emerging areas such as mobile applications.

The company has 95 employees, a development centre in Bangalore, India and a significant sales and support presence in Japan through a wholly-owned subsidiary.

Arun Kumar, president and managing director, Hughes Software Systems, said the acquisition would help Hughes tap the Japanese market.

"This deal will extend our reach and understanding of the Japanese market, which will help us significantly enhance our market share in that region," he said.

Hughes Software Systems serves more than 180 customers worldwide, in the telecoms infrastructure business process outsourcing sectors. It has three outsourcing centres, at Gurgaon near New Delhi, Bangalore and in Nuremberg, Germany.

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