Telecom Lead India: Telefield International (Holdings) is planning to enter the Indian telecom market by acquiring 53 percent stake in Fargo Telecom Holdings for HK$15 million.
The Hong Kong-based Electronic Manufacturing Services (EMS) provider Telefield International will also buy another 42.3 percent stake for up to HK$20 million.
The acquisition of Fargo Telecom, a manufacturer of GPS receivers and machine-to-machine (M2M) modems and gateways, will enable Telefield to tap India, South Africa, China, Russia and Brazil markets.
The investment by Telefield will strengthen Fargo Telecom and enhance its abilities to develop solutions for the M2M market.
“We believe the acquisition will bring us additional technical expertise and business opportunities in developing high-end niche communication products and broadening our product range. Fargo Telecom’s business complements the Group’s existing businesses and enables the Group to tap the markets of, in particular, South Africa, China, India, Russia and Brazil,” said Cheng Han Ngok, Steve, chairman of Telefield.
In November 2011, the Telefield Group acquired 51 percent equity of an electronic gaming accessories company, GAEMS, to expand in high potential gaming accessories business.
Fargo Telecom, through its subsidiaries Maestro Wireless Solutions, Smart Gears and Fargo Telecom Asia, designs, manufactures and sells GPS receivers and M2M modems and gateways. It also offers solutions and one-stop engineering services.
“We are optimistic about the prospects of the telecommunications market and believe the acquisition will provide a solid ground for the Group’s investment,” Telefield chairman added.
“The M2M market is consolidating and we see Telefield’s investment as an endorsement of our strategy. The combination of Telefield’s resources with Smart Gears’ engineering expertise and Maestro Wireless Solutions’ world-wide commercial reach will lead to increased efficiencies in product development and faster time-to-market for innovative M2M products and solutions,” said Xavier Dupont, managing director of Fargo Telecom.
Telefield International (Holdings) markets and distributes branded small and medium business phone systems (SMB phone systems) in North America and South America, and assembles and/or markets and distributes multimedia products and computer accessories under the TrekStor brand in Europe.
