Syrma SGS forays into the lucrative Electro-Medical Devices market by Acquiring Majority Stake in Johari Digital Healthcare Limited

Syrma SGS, a leading provider of electronics system design & manufacturing services, has entered into definitive agreements to acquire a 51% stake in Johari Digital Healthcare Limited ("JDHL") an end to end design-led manufacturer of electro-medical devices, for a consideration of ₹ 2,295 million. Additional consideration of up to ₹ 280 million is to be paid on achieving certain pre-determined milestones. The acquisition will enable Syrma SGS to enter the lucrative medical devices segment, a fragmented and fastgrowing market with high demand for quality and innovation.

JDHL has a strong reputation as an end-to-end design-focused manufacturer of electro-medical devices, focusing on therapeutic areas such as aesthetics, diagnostics, physiotherapy, life sciences among others. JDHL's facility is FDA / MDSAP compliant, ensuring the highest quality and safety standards, and meeting the regulatory requirements in the US, Australia, Canada, Brazil and Japan. JDHL also has multiple FDA 510(k) approvals in place for its various products.

This acquisition will enhance Syrma SGS's capabilities and offerings in the electro-medical devices segment and create business synergies across multiple areas. Syrma SGS expects the acquisition to be accretive to its earnings and cash flow.

Sandeep Tandon, Chairman, Syrma SGS said, "We are delighted to welcome JDHL to the Syrma SGS family. This partnership is a strategic fit for us, as it aligns with our vision of foraying into fast growing medical devices segment. JDHL has a proven track record of delivering innovative and high-quality products to its customers, and we look forward to leveraging their design capability will expand Syrma's ODM skills in the high-growth medical electronics space."

Satyendra Johari, Chairman, JDHL said, "In the last three decades, JDHL has earned Trust and Recognition of Global leading medical device companies for Design, Engineering and manufacturing services. We are excited to be partnering with Syrma SGS, whose Dynamic leadership and expansive industry insight will broaden the spectrum for us to develop smart and affordable medical electronics for the World. With this partnership, we are poised to be the leading medical electronics company of India."

IMAP India was the sole adviser to sellers on the transaction.

Shares of Syrma SGS Technology Limited was last trading in BSE at Rs. 500.05 as compared to the previous close of Rs. 500.10. The total number of shares traded during the day was 120317 in over 6775 trades.

The stock hit an intraday high of Rs. 516.80 and intraday low of 483.55. The net turnover during the day was Rs. 60337391.00.

Source : Equity Bulls

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SyrmaSGSTechnology INE0DYJ01015 IndustrialElectronics Acquisition JohariDigitalHealthcare