Kilburn Office Automation Ltd (KOAL) has entered into an agreement with Kyocera Mita India Pvt Ltd to sell its office equipment business for an undisclosed sum, the company has said in a statement to the Bombay Stock Exchange.

Under this deal, Kyocera Mita India, a subsidiary of Kyocera Mita Corporation of Japan, will acquire KOAL’s nationwide network of 17 sales offices, as well as its service centres, customers and 140 employees.

Currently, KOAL has presence in various market segments, such as document management products/solutions, IT-enabled services, drawing office equipment, banking & presentation products/solutions and mailing products & solutions.

On the Bombay Stock Exchange, share price of Kilburn Office Automation Ltd shot up 20 per cent to hit the upper circuit for the day and closed at Rs 9.66 a share. The company had revenues of Rs 55 crore, with net profit of Rs 56 lakh for the year ended March, 2011.

Since its inception in 2008, Kyocera Mita India has been strengthening its sales through a nationwide dealer network and also through direct sales to major enterprises. The company is headquartered in Gurgaon, with 60 employees and four sales offices.

The acquisition will enable Kyocera Mita India to do business with major enterprises and strengthen its sales and service coverage across the country, as demand for printers and multifunctional products has been steadily rising in India.

Kyocera Mita also aims to become a market leader in India’s printer and multifunctional products industry within the next three years and plans to triple its annual sales in China, India, Korea and other ASEAN countries.

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