Syrma SGS to acquire defence and maritime equipment makers Elcome and Navicom

In a bid to expand into defence and maritime equipment, the Board of electronics maker Syrma SGS has approved the acquisition of Mumbai-based Elcome Integrated Systems.

Syrma will acquire Elcome in four tranches with the first tranche involving a 60 per cent stake purchase for an aggregate consideration of around ₹235 crore. Price of subsequent tranches will be determined based on agreed performance milestones.

The Board has also approved for Elcome to, in turn, acquire the entire paid-up share capital of Mumbai-based Navicom Technology International. Elcome’s acquisition of Navicom will be completed on the date of completion of the first tranche, and post-acquisition, Navicom will become a wholly-owned subsidiary of Elcome.

Both companies are engaged in manufacturing defence and mariti