Rashi Peripherals (RPTech) will acquire a 70% stake in cybersecurity distributor Satcom Info Tech for ₹136.2 crore.
The deal, at ₹1,805 per share for 75,460 shares, marks RPTech's strategic entry into cybersecurity distribution.
The big picture: The acquisition expands RPTech's ICT portfolio into cybersecurity at a crucial time.
By the numbers: Satcom brings strong financials - ₹170 crore revenue in FY24 and ₹2.5 crore profit - complementing RPTech's vast distribution network of 50 branches and 63 warehouses.
Why it matters: RPTech gains immediate access to the growing cybersecurity market. For a company serving 8,400 customers across 680 locations, cybersecurity adds a crucial high-margin vertical to its existing IT distribution business.
Market context: The deal values Satcom at ₹194.5 crore.
The company's revenue trajectory - ₹118 crore in FY22 to ₹170 crore in FY24 - suggests strong growth potential in India's expanding cybersecurity market.
Looking ahead: Key metrics include deal closure within three months and Satcom's integration into RPTech's distribution network. Success depends on leveraging synergies across RPTech's customer base.
The bottom line: While RPTech dominates IT distribution, the Satcom acquisition signals its evolution toward high-value cybersecurity solutions.
The global cybersecurity market size is projected to grow from USD 190.4 billion in 2023 to USD 298.5 billion by 2028 at a CAGR of 9.4%.