Cyient Limited, a Hyderabad-based information technology and engineering services company, has signed a definitive agreement to acquire a 74 per cent equity stake in Mysore-headquartered electronics system design and manufacturing (ESDM) services firm Rangsons Electronics Private Limited, in an-all cash transaction and for an undisclosed sum.
The acquisition will enable Cyient to expand into high-technology and high-value, design-led systems and solutions in line with its S3 (services, systems and solutions) strategy, it said in a filing to the BSE on Friday. Avendus Capital was the adviser to this transaction.
Rangsons Electronics, with over two decades of experience in developing highly complex systems, is a qualified supplier to global OEMs across defence and aerospace, medical, automotive, telecommunications and industrial segments.
It has production facilities and provides services from design-to-production and end-of-life support, besides having strong capabilities in managing new product introduction cycles, including prototyping, certification and vendor management.
“With its strong domain expertise, coupled with a comprehensive solution portfolio, certifications and global customers, Rangsons fits extremely well in Cyient’s business. The new relationship will help Cyient expand its core business while deepening partnerships with OEM customers,” said Krishna Bodanapu, MD and CEO of Cyient.
The proposed acquisition of Rangsons will also help Cyient to position itself as a strong offset partner.
