NEW DELHI: Dixon Technologies, India’s largest contract manufacturer, on Tuesday announced plans to acquire a majority stake in Ismartu India, a manufacturing unit of Chinese phone maker Transsion Holdings.
The company, in an exchange filing, said the deal involves a two-part acquisition. In the first tranche, Dixon will purchase 50.1% of Ismartu India for Rs 238.36 crore in cash. This translates to 1,38,73,846 equity shares of Ismartu India. The sellers include Ismartu Singapore, Transsion Technology Limited, and 5A Advisors LLP.
Following the initial purchase, Dixon has the option to acquire an additional 1.60% to 5.90% stake in Ismartu India, depending on the company’s performance in the financial year 2025-26. This second tranche will be contingent upon Ismartu India achieving Rs 200 crore. “Acquisition of tranche 1 shares and tranche 2 shares by the company shall be subject to satisfactory completion of conditions precedent as set out in the share purchase agreement and is subject to approval of the Competition Commission of India,” said the company in an exchange filing.
Dixon is already making smartphones and feature phones for brands such as Xiaomi, Motorola, Samsung and Jio, among others, in India. Currently, it has manufacturing capacity of 30 million smartphones and 50 million feature phones at its four plants in Noida. With the acquisition, Dixon will gain access to facilities for feature phones and smartphones, including popular brands like Itel, Infinix, and Tecno.