Cyient acquires Pratt and Whitney’s Global Services Engineering Asia
An agreement for the asset purchase was signed on Wednesday, with the deal expected to be closed by August-end
Hyderabad: Cyient Ltd, which earns 35.8% of its revenue from aerospace and the defence sector, has acquired Global Services Engineering-Asia, an engineering and repair unit of the US-based aircraft engine manufacturer Pratt and Whitney Services Pte Ltd.
An agreement for the asset purchase was signed on Wednesday. The deal is expected to close by August-end, Cyient said in a statement. The deal amount was not disclosed.
The acquisition will give Cyient the capability to provide aftermarket services for the aerospace industry in the Asia-Pacific region. The Hyderabad-based engineering services provider has maintenance, repair and overhaul division within its aerospace and defence vertical.
“Cyient is very proud to further strengthen our long-term partnership with Pratt and Whitney today through this transaction, and is excited to welcome these highly skilled employees into the Cyient family," Krishna Bodanapu, managing director and chief executive officer of Cyient Ltd, said in a statement. “We are committed to growing our aerospace aftermarket services in the region and expanding our reach into other industries within Singapore," he said.
Based in Singapore, Global Services Engineering – Asia provides repairs, development and validation for aero gas turbine engine components. Pratt and Whitney is a division of United Technologies Corp.
Cyient has built capabilities in mechanical and manufacturing engineering, software, systems and electronics, and aftermarket services in aerospace engineering, according to the company. Asia Pacific contributes 12% to Cyient’s global revenue. The region grew 27.8% annually in the latest quarter.
Cyient’s Asia-Pacific division is based in Melbourne, Australia, and has 11 sales and delivery locations across the region.
This is the fourth acquisition by Cyient, which had cash reserves of ₹ 661.4 crore at the end of the June quarter. It acquired a majority stake in Mysuru-based electronics system design and manufacturing services company, Rangsons Electronics Pvt. Ltd, in January. It acquired US-based Softential Inc in March last year followed by purchase of 51% in data analytics start-up, Invati Insights Pvt. Ltd, in an all-cash transaction in August.
Cyient stock was trading up 0.58% at ₹ 542 at 12.03pm on BSE, while the benchmark Sensex gained 0.65% to 28,365.84 points.
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