Mumbai-based Savex Technologies, India’s third largest information and communication technology (ICT) distributor, has signed an agreement to acquire Bengaluru-based Inflow Technologies Pvt Ltd for a fee not disclosed.
As part of the transaction, Savex will immediately acquire a significant majority stake in Inflow Technologies and the remaining stake will be acquired over the next two years. As a result of the deal, revenues for Savex Technologies, which competes with companies such as Redington India and Ingram Micro, will immediately drop from $ 2.5 billion to around $ 3 billion.
Founded in 2005, Inflow Technologies has revenues of approximately $ 350 million (approximately ₹ 2,586 crore). The company has 15 global sales offices, employs more than 370 people and serves more than 2,300 distribution partners and 10,000 customers.
Inflow – a niche player in the IT infrastructure distribution services market in India and South Asia – has direct relationships with over 50 global technology providers such as Cisco, HP Enterprise, Palo Alto, McAfee, Forcepoint , Polycom and Zebra, among others.
Global investment banking firm Singhi Advisors was the exclusive strategic and financial advisor to the transaction.
“Inflow’s focus on next-generation technologies, along with Savex’s other recent acquisitions represent its commitment to be a full-spectrum technology service provider for consumers and businesses,” Bimal Raj told BusinessLine, partner at Singhi Advisors, confirming the agreement.
Following this agreement, Savex Technologies and Inflow Technologies will continue to operate as two separate entities, even as the companies combine their best product segments – consumer and enterprise – to become a “powerhouse”.
The Bengaluru-based company will be led by its Group Managing Director Byju Pillai and its current management team, with representations to the Savex board of directors.
“The investment in Inflow supports our strategic plan to become a full-service IT distributor and underscores our commitment to digital transformation and new era technologies. It will also strengthen our portfolio of corporate channels and allow us to deliver higher value to our customers and channel partners. Inflow has a strong platform that will help us accelerate our diversification and expansion plans in South Asia, and the agreement will increase our presence in the security, storage and networking space, ” said Savex Technologies president Anil Jagasia.
In 2019, Savex Technologies acquired Uniserved Tech Solutions Pvte Ltd, a first organized local aggregation platform for the provision of technology services.