Syrma SGS acquires 51% stake in Johari Digital Healthcare for ₹2,295m

Syrma SGS, a prominent player in electronics system design and manufacturing services, has sealed the acquisition of a 51% stake in Johari Digital Healthcare Limited (JDHL), a comprehensive design-led producer of electro-medical devices. The deal’s value stands at ₹2,295 million, with an additional ₹280 million to be paid contingent on the achievement of specific milestones. This acquisition will facilitate Syrma SGS’s entry into the rapidly growing and fragmented medical devices market, recognized for its high demand for innovation and quality.

Johari Digital Healthcare’s robust reputation as an end-to-end, design-driven manufacturer in the field of electro-medical devices extends across various therapeutic areas, including aesthetics, diagnostics, physiotherapy, and life sciences. Its FDA / MDSAP compliant facility adheres to the highest quality and safety standards, meeting regulatory prerequisites in the US, Australia, Canada, Brazil, and Japan, along with multiple FDA 510(k) approvals for various products.

The strategic acquisition will bolster Syrma SGS’s capabilities in the electro-medical devices segment, creating business synergies across multiple areas and is expected to be accretive to its earnings and cash flow.

Sandeep Tandon, Chairman of Syrma SGS, conveyed, “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 the 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 to expand Syrma’s ODM skills in the high-growth medical electronics space.”

Satyendra Johari, Chairman of Johari Digital Healthcare, expressed his excitement about the partnership, stating, “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.”

The acquisition, with IMAP India as the sole adviser to the sellers, illustrates the growing importance of strategic partnerships in India’s healthcare technology sector and marks a significant step for both companies in expanding their reach and capabilities within the industry.