Syrma Technology signs merger agreementwith SGS Tekniks to strengthen its global and domestic presence in EMS.

All set to enter the `1,000-crore-revenueclub through this merger; aims 20 per cent growth Y-o-Y.

Syrma Technology and SGS Tekniks, leaders in electronicdesign and manufacturing services for global and domestic OEMs, have announced adefinitive merger agreement. The cash-cum-stock merger will see the creation ofSyrma SGS Technologies Pvt. Ltd with a combined turnover of over `1,000-crores, with 55 per cent revenues coming from exportsprimarily to USA and Europe. The deal was supported through a Private Equityinvestment by GEF.

Upon completion of this Merger, Syrma SGS Technologies Pvt.Ltd will have eight manufacturing facilities in India across Gurgaon, Manesar,Bawal, Baddi, Bangalore, Chennai, and Bargur, and three design centres located inChennai, Gurgaon, and Stuttgart in Germany.

Consequently, this strategic merger is a perfect fit as thereare no overlapping customers, industry verticals and geographies between thetwo entities. Further, with the established track record and strong expertiseof the combined entity will serve marquee customers in Industrial, WaterPurification, Medical and Automotive industries.

With Indian EMS market growing at a CAGR of over 25 per cent,there is an increase in opportunity to outsource manufacturing in consumerelectronics, home appliance, mobile phones, etc. To take advantage of suchemerging opportunities, the existing management of the two companies willcontinue to play key roles in driving the future growth of the company.

Leveraging the opportunities this merger is poised to expandproduct and services offerings, such as Design Services, Board and Box buildcapabilities that can serve new product and engineering change initiatives.