Telecom and IT products distributor Redington (India) Ltd has decided to acquire Turkish company Linkplus Bilgisayar Sistemleri Sanayi ve Ticaret AS for an undisclosed amount.
Redington will first purchase a 70 per cent stake in Linkplus and buy the remaining by 2018, the Chennai-based company said in a stock exchange filing.
Linkplus has been valued around six times its future earnings, Redington said.
Incorporated in 1995, Linkplus is a distributor of Oracle software in Turkey.
Redington was set up in 1961 and distributes products of more than 100 international brands. The company provides supply chain solutions for all categories of IT products including personal computers as well as networking, software and enterprise solution products. It also distributes telecom products, digital lifestyle products, entertainment products and digital printing machines.
Redington went public in 2007 and is backed by Standard Chartered Private Equity, which picked up close to 12 per cent in the company a few years ago. Redington also counts US-based global IT products distributor Synnex as a strategic shareholder.
Earlier in 2013, it had acquired a 47.78 per cent stake in another Turkish firm ADEO Bilisim Danismanlik Hizmetleri San. ve Tic. A.S. for $1.09 million through its Turkey-based step-down subsidiary ARENA Bilgisayar Sanayi Ve Ticaret Anonim Sirketi.