Bangalore-based electronics company Centum Electronics Ltd has acquired a 51% equity stake in French firm Adetel Group, it said in a statement. Financial terms of the deal, however, have not been disclosed.
The transaction translates to greater international presence for the group, in terms of operations and scale for its products, technologies and competencies, it said.
Also, the group can leverage the technological capabilities of Adetel along with the cost competitiveness it enjoys as an Indian firm to increase its share in the global markets, it added.
“The acquisition makes Centum Electronics one of the forerunners in the market, enhancing its growth...This gives us enormous opportunities since we have design and high-tech manufacturing capabilities," said Apparao Mallavarapu, chairman and managing director of Centum Electronics.
Centum Electronics offers a range of products and services in defence, aerospace, space, industrial, medical and communications. About 80% of Centum's revenue comes from the global markets.
In the quarter ended March 31, 2016, its net profit dropped 49.1% to Rs 6.97 crore while its sales fell 6.3% to Rs 116 crore from the year-ago period.
Adetel specialises in design, development and industrialisation of embedded electronic systems for defence, aerospace, industrial, transportation, medical and energy sectors. It has operations in the US, Europe and Canada.
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