Dixon Technologies Secures CCI Approval for 56% Stake Acquisition in Ismartu India

Dixon Technologies (India) Ltd has announced in a stock exchange filing an update on their earlier intimation dated April 8, 2024, regarding the acquisition of a majority stake in Ismartu India Private Limited. The announcement detailed that Dixon Technologies had entered into a Share Purchase Agreement (SPA) with Ismartu In Pte. Limited, Transsion Technology Limited, 5A Advisors LLP, and Ismartu India Private Ltd. Additionally, a Shareholders’ Agreement (SHA) was signed with Ismartu India Pvt Ltd, Ismartu In Pte. Limited, and 5A Advisors LLP on the same date. This acquisition was subject to the approval of the Competition Commission of India (CCI).

In a significant development, Dixon Technologies has now received the necessary approval from the CCI. The company informed that the CCI, in its meeting held on July 18, 2024, approved the proposed combination, registered as Comb Reg no. C-2024/04/1137, under sub-section (1) of Section 31 of the Competition Act, 2002. The approval allows Dixon Technologies to acquire up to 56% shareholding in Ismartu India Private Limited.

Dixon Technologies, through its various subsidiaries and joint ventures in India, is a prominent player in the Engineering and Manufacturing Services (EMS) sector. The company’s product line includes EMS for communication devices such as mobile phones, laptops, and tablets. Beyond communication devices, Dixon Technologies also provides EMS for lighting solutions, televisions, washing machines, security systems, wearables, and hearables.

Ismartu India Private Limited is an Indian subsidiary of Ismartu In Pte. Limited. It specializes in EMS related to manufacturing mobile phones, Printed Circuit Board Assembly, LCD Module displays, and other ancillary services for mobile phones. The company is engaged in production, assembly, testing, procurement, and failure analysis, ensuring a comprehensive service offering in its business domain.

The acquisition’s completion is contingent upon fulfilling other conditions precedent as stipulated in the SPA. This strategic move is expected to bolster Dixon Technologies’ capabilities and market presence in the EMS sector, particularly in the rapidly growing mobile phone manufacturing segment. The acquisition aligns with Dixon Technologies’ growth strategy, enabling it to leverage Ismartu India’s expertise and infrastructure to expand its product offerings and enhance service delivery.

This acquisition marks a significant step for Dixon Technologies, reinforcing its position as a leader in the EMS industry. The company remains focused on executing its strategic initiatives to drive growth and deliver value to its stakeholders. The approval from CCI not only paves the way for this acquisition but also underscores the regulatory body’s recognition of the strategic fit and potential synergies between Dixon Technologies and Ismartu India.

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