CG Acquires US Based QEI, Inc
CG, part of US$4Bn Avantha Group, today announced acquisition of US based company QEI, Inc. The enterprise value of this acquisition is equivalent to $ 30.0 Mn comprising of an upfront payment of $ 24 Mn followed by balance of $6 Mn to be paid as a conditional ‘Earn-out’ amount. For the year ended 31 July, 2010, QEI has revenues equivalent of $ 12.4 Mn and Earnings before interest, depreciation, taxation and amortization (EBIDTA) equivalent of $ 2.35 Mn. The acquisition is subject to certain regulatory approvals in US.
This is CG’s ninth acquisition in a span of 6 years; the other successful acquisitions being- Pauwels (2005), Ganz (2006), Microsol (2007), Sonomatra (2008), MSE Power Systems (2008), Power Technology Solutions (2010); three businesses of Nelco in 2010 and recently Sweden based Emotron Group (2011).
Originally formed in 1960 as Quindor Electronics, the Company was bought over in 1975 and renamed QEI Inc. QEI is a market-leading provider of SCADA and automation systems, and products for the management of electric transmission and distribution networks in: (a) Electric Utilities and (b) Electrified Transit. Major products and services include (i) Complete and fully integrated SCADA systems; (ii) Master stations and control centres; (iii) Distribution Management (DMS) applications; (iv) Substation automation systems and products; (v) Feeder automation systems and products; (v) System installation and integration services.
The Company is based in Springfield, New Jersey, USA. As a full function organization, with a broad spectrum of products and services, QEI covers the complete range of applications for the markets served, with a widely distributed and large customer base.
With this acquisition, CG has further fortified its position in the SCADA and Substation Automation domain. Some areas of complementarities include Data Acquisition; Renewable SCADA; Transit; Substation Automation.
The acquisition will help CG in penetrating the North American automation market by using QEI’s customer references. The acquisition presents a highly scalable opportunity for CG to capitalize upon the distribution automation markets in North America, India and Europe. Today, CG already has its operations based in US through its earlier acquisition of Pauwels, Microsol and MSE Power Systems. This transaction will further reinforce CG’s system integration capabilities for the T&D markets.