The technology solutions company will acquire Singapore-based Grit Consulting to strengthen its global technology consulting practice.
Grit Consulting is a global performance improvement design consultancy that provides consulting services with a core focus on asset intensive industries such as metal mining and energy. It reported revenue of $18.1 million in FY22 and $8 million in FY21.Cyient will acquire Grit Consulting at an enterprise value of $37 million on a debt free, cash free basis. The company will pay 50% of the consideration upfront and remaining 50% will be paid as an earnout over two years subject to business performance. The transaction is accretive on EPS and EBIT margin from the first year.
Cyient said that the global consulting services market is expected to cross $1.2 trillion by 2025. This acquisition will enable Cyient customers across sectors to draw value from the Grit's deep knowledge and Cyient's technology solutions capabilities.
Cyient's MD and CEO, Krishna Bodanapu, said: "We are expanding our Cyient Consulting practice with this investment. It aligns with our consulting-led growth strategy, and we see great synergies across talent, footprint, and customers. With Grit Consulting's expertise in business transformation and our technology solutions capabilities, we can deliver strategic outcomes for our customers."
Cyient is a global engineering and technology solutions company. Its consolidated net profit rose 17% to Rs 154.20 crore while revenue declined 0.19% to Rs 1,181.20 crore in Q4 FY22 over Q3 FY22.
Shares of Cyient fell 1.46% to settle at Rs 896.80 on Wednesday.
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