Leading networking firm Smartlink Network Systems today said it will sell its Digilink business to Schneider Electric India for Rs 503 crore in an all-cash deal.
The Digilink business comprises Smartlink’s passive networking business, including the manufacture, marketing and sale of structured cabling products.
In a filing to the Bombay Stock Exchange, Smartlink said its “board has granted approval to the company to enter into a business transfer agreement with Schneider Electric India for the sale of Smartlink’s Digilink business to Schneider for a consideration of Rs 503 crore, payable in cash.”
Following the announcement, Smartlink shares surged by 20 per cent to hit the upper circuit of Rs 93.75 on the Bombay Stock Exchange. At 11.28 a.m, the shares were trading at Rs 77.70, down 0.77 per cent.
The company said the Digilink business registered sales of about Rs 155 crore for the 12-month ended December 31.
The transaction would include transfer of the Digilink brand and trademarks, its manufacturing facility in Goa, distribution network and employees relating to the business. The deal is subject to regulatory approval.
As part of the deal, Smartlink will not compete in the passive networking business for five years.
Smartlink said the sale of Digilink will allow it to accelerate its growth in other businesses of the company, such as Digisol in active networking areas and Digicare, which has evolved service infrastructure across the country.
Business Line : Companies News : Smartlink to sell Digilink business to Schneider Electric India for Rs 503 cr
The Digilink business comprises Smartlink’s passive networking business, including the manufacture, marketing and sale of structured cabling products.
In a filing to the Bombay Stock Exchange, Smartlink said its “board has granted approval to the company to enter into a business transfer agreement with Schneider Electric India for the sale of Smartlink’s Digilink business to Schneider for a consideration of Rs 503 crore, payable in cash.”
Following the announcement, Smartlink shares surged by 20 per cent to hit the upper circuit of Rs 93.75 on the Bombay Stock Exchange. At 11.28 a.m, the shares were trading at Rs 77.70, down 0.77 per cent.
The company said the Digilink business registered sales of about Rs 155 crore for the 12-month ended December 31.
The transaction would include transfer of the Digilink brand and trademarks, its manufacturing facility in Goa, distribution network and employees relating to the business. The deal is subject to regulatory approval.
As part of the deal, Smartlink will not compete in the passive networking business for five years.
Smartlink said the sale of Digilink will allow it to accelerate its growth in other businesses of the company, such as Digisol in active networking areas and Digicare, which has evolved service infrastructure across the country.
Business Line : Companies News : Smartlink to sell Digilink business to Schneider Electric India for Rs 503 cr
