Noida Headquartered, IT major HCL technologies said that it will acquire Butler America Aerospace for $85 million in cash. The move is aimed at strengthening the company’s position in the aerospace and defence engineering services space.
Butler America Aerospace offers services like engineering, design services and aftermarket engineering services to US aerospace and defence customers in which they are providing services in areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services to customers.
“The consideration for the proposed transaction is $85 million to be paid in cash. The proposed acquisition will exclude the staffing business of Butler America,” said HCL which is the country’s fourth largest IT Company.
Butler America Aerospace had revenue of $85.4 million for the year ended December 31, 2015. The transaction, when consummated, is likely to be EPS accretive, it added.
With over 900 engineers and seven design centres in the US, Butler America Aerospace has a marque list of clients. “The acquisition will bolster HCL’s capabilities in this space and access to clients with large R&D spends,” it said.
The acquisition, subject to regulatory approvals including CFIUS approval in the US, is expected to be completed by December 31, 2016
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Sameeksha Bhardwaj, From ITvoir News Desk