Cyient Limited a city-based IT firm today said its wholly owned subsidiary Cyient Inc, has signed a definitive agreement to acquire 100 per cent of the shares of Certon Software, a USA-based engineering services provider.
Financial details of the acquisition were not disclosed.
According to a release by Cyient, incorporated in 2006, Certon employs a core team of around 45 people, with revenue at the current run-rate of USD 6 million and sustainable low double digit EBITDA margins.
This is Cyient's fifth acquisition in the last two-and -half years as part of its Design-Build-Maintain strategy. Cyient has a strong cash position of USD 127 million and will continue to look for acquisitions that will enable it to achieve its goal of industry-leading growth, it said.
Anand Parameswaran, Cyient's Senior vice-president and Aerospace and Defense Business head said, Cyient holds a leadership position in providing engineering services to the Aerospace and Defense market and this acquisition will enable company create a differentiated value proposition in Avionics that aligns with its Aerospace and Defense strategy of becoming a key Design Led Manufacturing (DLM) player in this space.
"We expect the industry to have continued investment in avionics driven by technology changes and obsolescence and this acquisition will aid Cyient in strengthening our presence in the avionics market. Automation capabilities brought in by Certon, coupled with Cyient's strong global delivery capabilities, will reduce the cost-and-time-to-market for our clients," he said.
The transaction would be EPS accretive," Parameswaran said.
Timothy Stockon, CEO and founder of Certon said over the years his company had built an impeccable record of service delivery, a long-term client base, and unparalleled capability to develop, validate, and verify complex safety-critical systems.
This alliance creates a scalable platform for enhancing automation capabilities and provides an opportunity for cross-pollination of offerings across the combined customer base, he added.
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