Sasken Communication Acquires Botnia Hightech Oy
Sasken Communication Technologies has announced the 100% acquisition of Finland based Botnia Hightech Oy (Botnia). Sasken will pay ? 35.5 million (Euros Thirty Five point five million) for Botnia in an all cash deal.
Based at Kaustinen, Finland, Botnia Hightech is an important supplier of Hardware, Software, Mechanical Design and Testing Services to leading mobile handset vendors. Botnia's services can be applied in R&D projects, subprojects, tester design, as well as in cost reduction. They also offer tailor-made turnkey solutions. Botnia Hightech Oy's main operations are in Finland with additional operations in Denmark and Germany. For the year ended April 30, 2006, Botnia reported revenues of ? 17.7 million with a Profit After Tax of ? 2.9 million.
Sasken has been a leader in providing R & D and support outsourcing services to companies across the communications value chain. This acquisition is expected to help Sasken scale its offering portfolio faster. Sasken has been focusing on a strategy of deepening relationships with Tier 1 customers and Botnia's customer base will further complement the same. The acquisition also gives Sasken a presence in Finland, which will add to its global development centers in Mexico and China, apart from its centers in multiple locations in India.
The definitive agreement has been signed between the two companies, and integration planning will start immediately. A joint team has been identified to work on various aspects of the integration process. The integration process will start immediately after the closing day. The integration will be a significant exercise considering the cross-cultural and global nature of the process involved. The top management of both companies has reiterated their commitment and focus on executing this exercise seamlessly.
• Valuation - ? 35.5 million
• All cash deal
• Botnia Revenues FY 06 - ? 17.7 million; PAT – 16.3%
• 230 employees as on April 30, 2006
• Closing expected in Q2.
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