Amber Enterprises India Limited , through its material subsidiary IL JIN Electronics India Pvt Ltd, is set to make a significant move in the industrial automation sector. The company has announced its plans to acquire a controlling stake in Unitronics (1989) (R"G) Ltd., an Israeli firm listed on the Tel Aviv Stock Exchange.

Strategic Acquisition Details

IL JIN Electronics has entered into definitive agreements to purchase approximately 40.24% of Unitronics' issued and outstanding share capital, excluding dormant shares. The acquisition involves 5,624,591 shares at a price of 27.75 New Israeli Shekels (NIS) per share, totaling an aggregate purchase price of NIS 156,082,400.30.

About Unitronics

Unitronics, founded in 1989, is a prominent player in the industrial automation and control systems market. The company offers a comprehensive range of products including:

• Programmable Logic Controllers (PLCs)
• Human-Machine Interfaces (HMIs)
• Integrated PLC-HMI systems
• Variable Frequency Drives (VFDs)
• Servo Drives
• Software as a Service (SaaS) solutions like UniCloud
• Industrial Internet of Things (IIoT) solutions with built-in business intelligence

In the calendar year 2024, Unitronics achieved a turnover of approximately USD 57.00 million with impressive EBITDA margins of around 30%. The company's market capitalization stands at about USD 110.00 million.

Strategic Rationale

This acquisition aligns with Amber Group's strategy to expand its electronic division's portfolio into industrial applications. Key benefits of the deal include:

1. Expansion into Industry 4.0: The move strengthens Amber's position in the rapidly growing sector of Industry 4.0 solutions and real-time data-driven technologies.

2. Global Market Access: Unitronics has a robust global presence, with the US and European markets contributing approximately 55% and 40% of its sales, respectively.

3. Manufacturing Synergies: The acquisition aims to leverage IL JIN's extensive electronic manufacturing expertise and pan-India presence to enhance operational synergies and accelerate innovation.

4. Portfolio Diversification: IL JIN will broaden its portfolio from consumer durables, hearables, wearables, telecom, automotive, energy meters, and defense into the industrial electronics segment.

Management Perspectives

Mr. Jasbir Singh, Executive Chairman and CEO of Amber Group, commented on the transaction: "This strategic move marks a significant expansion for IL JIN, Amber's Electronic Division, as it broadens its portfolio... The partnership aims to leverage the capabilities of both organisations to achieve sustainable growth in the field of industrial automation."

Mr. Haim Shani, Joint Chairman of Unitronics, who will continue to serve on the board and work closely with Amber leadership, expressed his commitment: "This strategic partnership with Amber Group represents a pivotal moment in our journey. Driven by a shared vision, this collaboration aims to unlock powerful synergies and scale the business to new heights."

Transaction Timeline

The acquisition is expected to be completed within 60 business days from the effective date, subject to mutual agreement between the parties.

Conclusion

This strategic move by Amber Enterprises, through its subsidiary IL JIN Electronics, marks a significant step in expanding its footprint in the industrial automation sector. The acquisition of Unitronics is poised to enhance Amber's technological capabilities, global market presence, and position in the Industry 4.0 landscape.

Amber Enterprises India Limited (AMBER) has announced a significant move in the industrial automation sector through its material subsidiary, ILJIN Electronics (India) Private Limited (ILJIN). ILJIN has entered into agreements to acquire approximately 40.24% stake in Unitronics (1989) (R"G) Ltd., an Israel-based industrial automation company listed on the Tel Aviv Stock Exchange.

Key Acquisition Details

• ILJIN will purchase 5,624,591 shares of Unitronics at NIS 27.75 per share.
• The total purchase price for the acquisition amounts to NIS 156,082,400.30 (approximately ₹3,432.00 crore).
• Post-acquisition, ILJIN and Mr. Haim Shani will jointly control about 45.13% of Unitronics, making it a subsidiary of ILJIN.
• The transaction is expected to complete within 60 business days and requires no governmental or regulatory approvals.

About Unitronics

Unitronics, founded in 1989 and publicly listed since 2004, specializes in industrial automation products, including:

• Programmable Logic Controllers (PLCs)
• Human-Machine Interfaces (HMIs)
• Variable Frequency Drives (VFDs)
• Servo Drives
• IoT solutions

The company has shown consistent revenue growth over the past three years:

Strategic Implications

This acquisition aligns with Amber Enterprises' Electronic Division strategy to:

1. Expand into industrial applications
2. Leverage backward integration capabilities for manufacturing localization
3. Enhance competitiveness in the Indian market
4. Tap into the growing demand for Industry 4.0 solutions and real-time data-driven technologies
5. Gain access to global markets, particularly in the US and Europe

Market Impact

The move by Amber Enterprises, through ILJIN, marks a significant step into the industrial automation sector. This acquisition could potentially strengthen Amber's position in the electronics manufacturing services (EMS) industry, particularly in the realm of industrial automation and control systems.

As the demand for smart manufacturing solutions continues to grow globally, this strategic acquisition positions Amber Enterprises to capitalize on emerging opportunities in both domestic and international markets.

Investors and industry observers will be keenly watching how this acquisition unfolds and its impact on Amber Enterprises' future growth trajectory in the industrial automation space.