Hexagon AB, the Swedish parent company of Hexagon Metrology, has entered into an agreement to acquire all outstanding shares of the Indian company Elcome Technologies Pvt. Ltd. Elcome Technologies is a distributor and integrator of products and systems for positioning, navigation, alignment, measurement, and surveying by means of such technologies as optical- and global positioning system–based equipment, aerial photogrammetry, GIS and mapping, construction and mining machine control, portable coordinate measuring machines (CMMs), and laser scanning.
The company is an Indian market leader in its targeted application areas. Elcome Technologies’ sales have increased by more than 20 per cent annually since 2000. The company will have a turnover of more than 100 million Swedish kroner (about €10.7 million) in 2007, or about 35 million kroner (€3.8 million) excluding intercompany sales. It employs in excess of 80 people and operates in 12 locations across India.
“The acquisition of Elcome Technologies is an important piece in our global growth strategy in the emerging markets,” says Ola Rollén, CEO and president of Hexagon AB. “India will certainly become one of the most important markets for measurement technology solutions, and with this acquisition we are setting a strong foundation for Hexagon’s further expansion and market leadership in India.”
Rollén points out that the surveying equipment industry, a cornerstone of Hexagon’s measurement technologies portfolio, is estimated to grow in India at a rate of better than 20% through the coming years. “This growth will be further accelerated by increased spending on infrastructure, which in turn will benefit Hexagon’s expanding business in machine control and networks,” he says.
“Elcome Technologies has grown very rapidly in the last five years,” adds Ajay Seth, the Indian company’s managing director. “The acquisition by Hexagon gives us the means to grow even faster and keep pace with the fast-growing Indian market. I am extremely excited about this acquisition, as it provides us the vehicle for further investment in our market segments.”
Completion of the transaction is subject to customary regulatory approval. Elcome Technologies should be fully consolidated by the beginning of 2008 and will immediately contribute to Hexagon’s earnings.