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Smartlink Network Systems, a converged communication systems firm, said it will sell its wholly owned subsidiary, Digilink, to Schneider Electric India for Rs 503 crore.
It will be an all-cash deal and includes the transfer of the entire business. The staff will also be absorbed by the buyer.
Digilink is into the entire range of structured cabling solutions — copper and fibre — for enterprises, and small and medium businesses.
“We are extremely pleased to welcome Digilink business inside Schneider Electric. By combining the strengths of the two companies, we are creating a leadership position in the fast-growing network connectivity market in India,” said Mr K.R. Naik, Executive Chairman of Smartlink.
Digilink had sales of about Rs 155 crore for the 12 months ending December 31, 2010.
When asked what the company planned to do with the proceeds from the sale of the business, Mr Naik said, “Whatever we plan to do ahead, it will be related to the IT field.”
Smartlink has signed a non-compete deal of five years with Schneider Electric.
Schneider is a France-based MNC that has completed around 120 acquisitions in the last six to seven years.
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