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HCL buys US-based aerospace firm for $85 mn

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IANS New Delhi
Last Updated : Oct 21 2016 | 3:48 PM IST

Software major HCL Technologies Ltd on Friday announced acquiring US-based Butler America Aerospace for $85 million (Rs 569 crore) to strengthen its position in aerospace and defence engineering services space.

"The acquisition of Butler will bolster our capabilities in aerospace and give access to clients with large research and development spends," said the IT services firm in a statement here.

The buy out, however, will exclude Butler's staffing business.

With 900 engineers and seven design centres across the US, Butler has marquee clients in the aerospace and defence industries and works with manufacturers and their suppliers in America.

"Butler provides engineering and design services to aerospace and defence industries in the areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services," noted the statement.

Butler had posted $85.4 million revenue for the calendar year ending December 31, 2015 with 12.2 per cent operating margin.

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The acquisition will be completed by December 31 after regulatory approvals.

In a related development, the Noida-based outsourcing firm appointed C. Vijayakumar as its Chief Executive Officer with effect from Friday in place of Anant Gupta.

--IANS

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First Published: Oct 21 2016 | 3:40 PM IST

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