IT company Cyient is acquiring Citec, a global equipment and product development services company, for around ₹800 crore to strengthen its business offering.
Citec was founded in 1984 as an international equipment and product development services company serving customers in the energy, mining, process, oil & gas and manufacturing industries. It has 1,200 employees worldwide.
Cyient said this will be the largest outbound acquisition by an Indian engineering services company and even the company’s largest acquisition to date.
The acquisition will close during the quarter.
“This acquisition will strengthen Cyient’s position as a leader in equipment and product engineering, strengthen its presence in the energy industry with a focus on clean energy, and expand its European presence in the Nordic countries of Finland, Norway and Sweden and beyond to Germany and France ” said Cyient.
According to a regulatory filing, the transaction value is approximately ₹800 crore and it will be an all-cash deal.
“This acquisition will allow us to offer our combined portfolio of mechanical engineering and digital solutions to a new group of customers with extensive production facilities worldwide.
“Citec’s strong brand equity and talent pool, particularly in the Nordic region, will be critical in establishing Cyient’s foothold in the region and accelerating our future growth,” said Krishna Bodanapu, Cyient’s managing director and CEO, in a statement.
In 2021, Citec had a turnover of 80 million euros (about 660 million pounds sterling at the current exchange rate).
“Cyient’s large international organization of more than 14,000 professionals enables new offerings for our customers as well as new opportunities for our employees to leverage Cyient’s strong digital offering,” said Johan Westermarck, CEO of Citec.
