Siemens picks up 77% in iMetrex

Siemens Ltd is set to acquire a majority stake of 77 per cent in Chennai-based iMetrex Technologies Ltd, a leading electronic security, fire safety and building automation systems company.

Under the share purchase agreement with iMetrex, Siemens will acquire the balance stake of 23 per cent in the next five years.

"We decided on an earnout period of five years for the balance stake, as it would be a good way of incentivising the top management of iMetrex, and also build up competencies in our shared areas of interest much faster," Johannes Milde, group executive vice-president and member of the executive board, Siemens Building Technologies Group, said.

The Siemens board has also approved the consolidation of the company's worldwide building technologies business with the operations of iMetrex.

The new company is proposed to be called Siemens Building Technologies (SBT). As part of the agreement, Siemens will also acquire iMetrex's Chennai R&D centre and the Puducherry factory, which manufactures alarm control panels and electronic access controllers for the Indian and European markets.

Siemens' electronic security and building automation solutions group currently contributes Rs 115 crore to the company's India revenues, and has over 150 employees.In the Rs 1,300-crore Indian market for electronic security, fire safety and building automation solutions, iMetrex had revenues of Rs 160 crore in 2006, with 620 employees on its rolls.

SBT, the combined entity, with a strength of over 800 people, will be headquartered in Chennai, and is expected to command a market share of 22 percent, in the process bringing up revenues in excess of Rs 275 crore this year.

Milde noted that with the iMetrex acquisition, Siemens would further consolidate its building technologies business and strengthen its electronic security and specialised access product offerings.

Siemens officials declined to provide details of the offer price or overall acquisition deal size, saying that the deal would be concluded by the middle of next month.Besides India, iMetrex has operations in the UK, Ireland, Singapore and Hong Kong.

iMetrex was founded in 2005 through the merger of Chennai-based DATS India and Dublin-based Europlex Technologies.