Schneider Electric India Pvt Ltd has acquired the institutional and Goverment business segments (including Debt) of Zicom Electronic Security Systems Ltd for upto Rs 224.75cr.

The 2 segments are run under the brand Building Solutions Group and Special Project Group.

Schneider would take over around Rs 80cr of existing projects and forthcoming projects. The transaction is expected to be over in April 2010 following shareholders approval.

The sale is a part of the company's plan to focus on retail segment and its Middle East operations. The transaction would also make Zicom debt free with some cash in hand to foray into new businesses like alternative energy and aerospace engineering. As on 31 March 2009, the company had a debt of Rs 79.65cr

Prime Securities Ltd was the advisor to Zicom in the transaction.

The company will retain its retail security and fire protection businesses, which together contributed 52% of the group’s revenue of Rs375cr for the nine months ended 31 December.

Transaction Reference: Hindu

Zicom, incorporated in 1994, offers products like access control systems, closed circuit television surveillance, fire alarm systems, smart cards, biometrics, remote video surveillance, perimeter protection system, and law enforcement products.

Zicom has worked on around 1000 government city surveillance, railways, airports and big industrial projects till now.

The company will retain Zicom Retail Pvt. Ltd., which provides services to small and medium-sized companies and the home segment, and Unisafe Fire Protection Services LLC, Dubai.

The deal was at a premium to the market price, which values the entire company at Rs143 cr, based on Thursday’s close. At current prices, Zicom has a market capitalisation of Rs 167cr.

Schneider Electric is a wholly owned subsidiary of French firm Schneider Electric Industries SAS. The company is engaged in energy management systems.

Last month, it launched 'In-Diya', an energy-efficient LED based Lighting System, to provide lighting to people living with no or unreliable electricity in India.

The Zicom acquisition is the 3rd one for the company in India in last 10 months. It acquired two Bangalore-based firms, Meher Capacitors and Conzerv Systems in 2009

Previous Article

Nomura Hires Nitin Jain, Nipun Goel

Next Article

GVK Power To Raise R1200Cr

KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
05/03/10	Zicom Business Segments-Schneider Electric	M&A	Schneider Electric India Private Limited	49.30

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
31/01/12	M&A	Kajaria Ceramics Limited	Jaxx Vitrified Private Limited	1.26	Completed
23/01/12	Private Equity	Baytree Capital Associates	Godrej Consumer Products Limited	136.45	Completed
13/01/12	M&A	Fabbrica Italiana	Writefine Products Private Limited	-	Completed
19/12/11	M&A		Wep Peripheral - Printer Division	-	Completed

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
Zicom Electronic Security Systems Limited	Coronet Properties & Investments Private Limited Progressive Equifin Private Limited Manohar Gopal Bhindey Baronet Properties & Investments Private Limited Pramoud Vinayak Rao	"Land Mark",a-Wing,6th Floor, Off Western Westen Highway, Andheri Kurla Rd,An, Mumbai-400093		www.zicom.com
Schneider Electric India Private Limited	Schneider Electric Industries SAS	A-29, Mohan Cooperative Industrial Estate Mathura Road	Siemens Building Technologies Private Limited	www.schneider-electric.co.in

  Advisor

Prime Securities Limited(IB)