March 6, 2010 1:15:14 am
Schneider Electric has entered an agreement with Zicom Electronic Security Systems Limited to acquire the latters electronic security systems integration business,namely the Building Solutions Group and the Special Projects Group,for about Rs 224.7 crore. Following the announcement,shares of Zicom surged nearly 19 per cent to a 52-week high of Rs 134 on the Bombay Stock Exchange (BSE) from the previous close. Its shares closed at Rs 127.8,up by 13.8 per cent on Friday. The business recorded revenues of around euro 30 million in fiscal 2009 and has a headcount of about 200. The transaction excludes Zicoms other group companies,such as the retail business and a Dubai-based joint-venture.
Zicom is the leading independent electronic security systems integrator in India which has completed to date more than 1,000 projects in infrastructure (city surveillance,railways,airports etc.),government facilities,commercial buildings and high-end hotels where it enjoys strong market positions. The completion of the transaction,subject to shareholders approval,is expected to occur in April.
Zicom Electronic Security Systems chairman Manohar Bidaye said,The security integration business is getting into the next platform,which is IT driven,complex networks and highly capital intensive. The new business demands high level of Integrated Intelligent Building Management technology and knowledge for which Zicom will need to make huge investments,going forward. In view of this change,it seemed best to exit the business when the value is attractive and to focus on building the remaining retained business of home and SME,together along with the profitable fire business,which is the strength of our subsidiary in West Asia.
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