Syrma SGS Technology seals acquisition of 51% stake in Johari Digital Healthcare
In a significant move to strengthen its position in the electro-medical devices market, Syrma SGS Technology Limited has successfully completed the acquisition of a 51% stake in Johari Digital Healthcare Limited (JDHL). The deal, valued at ₹2,295 million, was finalized today, September 5, 2023, according to the terms outlined in the Transaction Documents. This acquisition is expected to create business synergies across multiple areas and be accretive to Syrma SGS’s earnings and cash flow.
Syrma SGS Enhances Medical Devices Capabilities with Johari Digital Acquisition
Johari Digital Healthcare Limited is a reputed end-to-end design-focused manufacturer of electro-medical devices. The company specializes in an array of therapeutic areas including aesthetics, diagnostics, physiotherapy, and life sciences. With this acquisition, Syrma SGS aims to diversify its offerings and fortify its capabilities in the electro-medical devices segment, which is noted for its high demand for innovation and quality.
Terms and Background of the Syrma SGS and Johari Digital Healthcare Deal
The acquisition comes after fulfilling various conditions precedent by JDHL to the satisfaction of Syrma SGS Technology Limited. In addition to the initial ₹2,295 million investment, an extra ₹280 million will be paid contingent upon the achievement of specific milestones. Johari Digital Healthcare operates an FDA/MDSAP compliant facility, adhering to stringent quality and safety standards. It also meets the regulatory prerequisites in the US, Australia, Canada, Brazil, and Japan, making it a globally compliant player in the medical devices field.
Strategic Business Synergies Expected Post-Acquisition
The strategic importance of this acquisition cannot be overstated for Syrma SGS Technology. Not only does it allow Syrma SGS a strong entry into the rapidly expanding electro-medical devices market, but it also positions the company for synergistic growth across various sectors. The deal is poised to enhance both earnings and cash flow, fortifying Syrma SGS’s financial position for future ventures.
The acquisition marks a major milestone for both companies and sets the stage for a more robust presence in the electro-medical devices industry. With the combined strengths of Syrma SGS Technology and Johari Digital Healthcare, the expectation is that the partnership will yield groundbreaking innovations in the medical devices field.