BackCyient to acquire majority stake in Rangsons Electronics
Cyient has signed an agreement to acquire a 74% equity stake in Rangsons Electronics in an all-cash transaction
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Hyderabad: Cyient Ltd (formerly Infotech Enterprises Ltd) on Friday said it is acquiring a majority stake in Rangsons Electronics Pvt. Ltd, a Mysuru-based electronics system design and manufacturing (ESDM) services company.
Cyient has signed an agreement to acquire a 74% equity stake in Rangsons Electronics in an all-cash transaction. The deal value wasn’t disclosed.
Rangsons Electronics is a qualified supplier to global original equipment manufacturers (OEMs) across defence and aerospace, medical, automotive, telecommunications, and industrial segments.
“With its strong domain expertise coupled with a comprehensive solution portfolio, industry-relevant processes, certifications, and global customers, Rangsons Electronics fits extremely well in Cyient’s business," Krishna Bodanapu, managing director and chief executive officer (CEO) of Cyient, said in a statement.
Hyderabad-based Cyient provides engineering services to companies in aerospace, consumer, energy, medical, oil and gas, mining, heavy equipment, semi-conductor, rail transportation, and utilities and communications sectors. The acquisition positions Cyient to expand into high-technology and high-value, design-led systems and solutions space.
“The new relationship will help Cyient expand its core business while deepening partnerships with OEM customers," Bodanapu added.
The acquisition will also help Cyient position itself as a strong offset partner, and participate in the ‘Make in India’ initiative of the National Democratic Alliance(NDA)-led union government.
Rangsons Electronics was established in 1993 and is a part of NR Group, makers of Cycle brand of incense sticks. It serves customers in India, North America, Europe, Japan and China, according to its website.
The company has two production units in Mysore providing services from design-to-production and end-of-life support.
“We have found a complementary partner in Cyient, who has built a global engineering solutions business backed by strong technology and ethos. We are proud to associate with them and believe the combined entity will be positioned uniquely as an end-to-end integrated engineering, design and manufacturing provider," Pavan Ranga, CEO of Rangsons Electronics, said in the statement.
The proposed acquisition is Cyient’s third in less than a year. The company paid cash to acquire US-based Softential Inc. in March last year. In August it acquired 51% stake in data sciences start-up Invati Insights Pvt. Ltd in an all-cash transaction.
Cyient stock rose 1.26% to ₹ 518.30 on BSE, while the benchmark Sensex gained 1.34% to 27,876.96 points at 12.54 pm.
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