Syrma SGS Technology has entered into definitive agreements to acquire a 51% stake in Johari Digital Healthcare (JDHL) an end to end design-led manufacturer of electro-medical devices, for a consideration of Rs 229.5 crore. Additional consideration of up to Rs 28 crore 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 fast growing 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.
Syrma SGS Technology is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS), specialising in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products and IT industries.
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