Schneider Electric takes over DIGILINK Business from Smartlink
The Board of Directors of Smartlink Network Systems Ltd. has entered into a Business Transfer Agreement (BTA) with Schneider Electric India Pvt. Ltd. for the sale of Smartlink's DIGILINK Business to the latter for a consideration of Rs. 5,030 million payable in cash. Each of these businesses provides a robust platform for future growth.
RippleWave Equity acted as the sole financial advisors to the Company for the Transaction and Amarchand Mangaldas were the legal advisors to Smartlink.
The Transaction would primarily include the transfer of the "DIGILINK" brand and trademarks, manufacturing facility at Goa, distribution network and the employees relating to the business. The Company has agreed to a non-compete condition for a period of 5 years for the passive networking business. The Transaction is subject to shareholder approval and other customary conditions.
K. R. Naik, Executive Chairman of Smartlink commented: "We are pleased to enter into this agreement as the Transaction recognizes the value of DIGILINK's pre-eminent position in the structured cabling business including the strengths of the brand, the strong network, support and dedication of our distributors and last but not least, a well qualified, capable and motivated workforce"
Olivier Blum, Country President of Schneider Electric India commented: "We are extremely pleased to welcome DIGILINK business inside Schneider Electric. By combining the strengths of the two companies, we are creating a leadership position in the fast growing Network Connectivity market India. DIGILINK not only gives us a very strong presence in Retail where other Schneider Electric products could be distributed, but also in, SOHO and Education Segments which is strongly complemented with the Enterprise presence of Schneider Electric. DIGILINK products will be also made available to international markets outside India where Schneider Electric benefit from a strong access to customers."
Upon completion of the Transaction, the Board of Directors will take an appropriate decision regarding the extent and mode of utilization of cash to the shareholders of the Company.
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