Automobile parts maker Minda Industries on Monday said it will acquire Germany-based iSYS RTS GmbH, a hardware and software developer for global original equipment makers (OEMs). The flagship company of India’s Uno Minda Group also announced a joint venture with Kasei Group, a maker of alloy wheels in Japan, for making moulds in Bawal, Haryana. The venture will have an initial investment of Rs 25.5 crore, with Minda holding 49.9% equity and Kasei Group the rest 50.1%.
On the acquisition, Minda Industries said it will invest five million euros ($5.86 million) to buy 80% equity of iSYS by the second quarter of 2017-18. In a BSE filing, the firm said it will pump 1.5 million euros ($1.76 million) in fresh shares of the firm, which clocked a revenue of 5.9 million euros ($6.91 million) for 2016-17.
The buyout will help Minda Industries expand its electronic control units’ offerings and technology solutions in India and global markets, the acquirer said.
Upon completion of the transaction, iSYS will operate as an independent unit led by its existing management team, while remaining a subsidiary of Minda. It will have access to Minda’s engineering centres globally.
Isys was incorporated in 2004 in Munich, Germany.
Uno Minda Group
The Rs 7,000 crore Uno Minda Group manufactures automobile components for OEMs and has manufacturing facilities in Indonesia, Vietnam, Spain and Colombia, as well as design offices in Taiwan, Japan and Spain. It runs 58 manufacturing plants globally.
In 2016, Minda Industries agreed to acquire a 49% stake of Roki Japan in a joint venture for Rs 42.97 crore. Same year, Uno Minda Group acquired Spain-based Rinder Group’s global automotive lighting business for 20 million euros (over Rs 145 crore then).
In 2014, Uno Minda Group signed a joint venture agreement with Japanese trading company Toyoda Gosei to manufacture brake hoses and other automotive rubber hoses in the country.
In 2013, Minda Industries had acquired Spain’s Clarton Horn Sau from PMAn Domestic AG, an entity affiliated to the Swiss investment firm Quantum Kapital, for 6.8 million euros.