Chennai, Nov 11 (IANS): Two electronic design and manufacturing services companies - Syrma Technology and SGS Tekniks - on Wednesday announced their merger agreement and entered the Rs 1,000 crore turnover club.

Announcing the decision to merge, the two companies said the cash-cum-stock merger will see the creation of Syrma SGS Technologies Pvt Ltd with a combined turnover of over Rs 1,000 crore, with 55 per cent revenues coming from exports primarily to the US and Europe.

The deal was supported through a private equity investment by GEF.

However, the two companies were silent on the financial terms of the merger.

Upon completion of this merger, Syrma SGS Technologies Pvt. Ltd will have eight manufacturing facilities in India across Gurugram, Manesar, Bawal, Baddi, Bengaluru, Chennai, Bargur, and three design centres in Chennai, Gurugram, Stuttgart (Germany).

According to the merging companies, the merger is a perfect fit as there are no overlapping customers, industry verticals and geographies between the two entities.

With Indian EMS market, growing at a CAGR of over 25 per cent, there is an increase in opportunity to outsource manufacturing in consumer electronics, home appliance, mobile phones and others, the companies said.

"Application areas such as medical electronics and defence electronics are seeing a surge leading to growth in the overall electronics sector," Syrma Technology Managing Director Sandeep Tandon said.

"We are delighted to bringing together these two iconic companies through this merger and creating a strong platform for both domestic and international growth," SGS Tekniks Founder and Chairman J.S. Gujral said.