Rueil-Malmaison (France), March 31, 2011 – Schneider Electric, the global specialist in energy management, announced today that it has signed an agreement to acquire from Smartlink Network Systems Ltd. the assets of the DIGILINK business, one of the leading structured cabling systems providers in India.
Headquartered in Mumbai, the DIGILINK business has 92 employees and generated sales of about INR 1.55 billion (approx. €25 million) in calendar year 2010. It has a manufacturing unit and an R&D center in Goa along with sales and distribution offices across India. DIGILINK is a well recognized brand in structured cabling and network connectivity in India and has a strong presence in retail, educational institutes, government, financial services, small office and home office segments.
With DIGILINK, Schneider Electric is well positioned to capture opportunities in the fast growing Indian network connectivity market as well as in other new economies, particularly in Asia Pacific and Middle East. The Group will be able to gain access to DIGILINK’s well-established distribution network in the retail sector which complements its presence in enterprise segments and will generate significant cross-selling opportunities for its Power and IT products.
Mr Eric Rondolat, Executive Vice President, Power Asia Pacific said “This acquisition reaffirms our strong commitment to grow our presence in India. With DIGILINK, Schneider Electric becomes a leading Indian player in the fast growing structured cabling market and generates synergies by leveraging its distribution network. We also aim to capture market opportunities in other new economies with its products.”
The completion of the transaction is subject to Smartlink Network Systems Ltd. shareholders and regulatory approvals and satisfaction of conditions precedent. The purchase price of the transaction is INR 5,030 million (~ €80 million). The acquisition is expected to meet Schneider Electric’s Return on Capital Employed criteria.
About Schneider Electric
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 110,000 plus employees achieved sales of 20 billion euros in 2010, through an active commitment to help individuals and organizations “Make the most of their energy”.