Salzer Electronics Limited, which offers electrical solutions, on Monday signed a deal to acquire a 72.32 per cent stake in Kaycee Industries Limited in an all cash deal. Salzer will make an offer to purchase a 26 per cent additional stake from public for a total equity value of Rs 22 crores.
Salzer Electronics will fund this transaction through a mix of internal accruals and debt. The acquisition is subject to regulatory approvals.
Kaycee manufactures switchgear and was controlled by the CMS group which is one of the largest IT/ ITES & Enterprise solution firms in India.
Kaycee Industries Limited would continue to remain a listed entity and both the companies would share technological know-how with each other, especially in the niche product offerings of the industrial switchgear & other allied business segments. The resulting synergies from this acquisition would benefit both the companies on the back of an enhanced product portfolio and access to a larger client base.
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