Chennai-based Redington (India) Ltd has acquired 47.78 per cent stake in ADEO Bilisim Danismanlik Hizmetleri San. ve Tic. A.S.(Adeo) for $1.09 million through its Turkey-based step down subsidiary ARENA Bilgisayar Sanayi Ve Ticaret Anonim Sirketi, Turkey (Arena), as per a stock market disclosure.
As per the filing, "Arena has also planned to make further investments of up to $150,000 in Adeo during the month, to increase its holding to 51 per cent and make it a subsidiary company."
This acquisition would help Arena to expand its network business. Founded in November 2008, Adeo provides information technology services including consultancy, outsourcing, productive resource utilisation and training services in Turkey and other markets to the companies and their partners operating in IT business.
Redington’s arm Arena was established in 1991 and is engaged in the wholesale trade of computers and their allied components, as well as other consumer electronics and communication equipment. The firm handles brands such as Hewlett Packard, IBM, Acer, Fujitsu, Siemens, Sun Microsystems, Microsoft, Philips, Sony, Seagate and Oki. Arena serves more than 7,500 resellers and 400 suppliers.
In 2010, Redington India acquired 49.4 per cent stake in Arena for $42.46 million. Although it had not acquired a majority stake it holds effective board control and considers Arena as a subsidiary. Previously, in 2008 it had acquired Easyaccess, an NBFC, to help finance channel partners in the distribution network.
Set up in 1961, Redington India, a part of Singapore-based Kewalram Chanrai Group, offers supply chain solutions for a range of IT products such as peripherals, printers, scanners, plotters, cartridges and personal computer components.
The firm, which went public in 2007, is backed by Standard Chartered Private Equity which picked close to 12 per cent stake two years ago. Redington also counts US-based global IT products distributor Synnex as a strategic shareholder with 23.6 per cent stake.
(Edited by Joby Puthuparampil Johnson)