Hyderabad-based IT services firm Cyient Ltd has acquired 100% stake in semiconductor company AnSem NV for $17 million (Rs 113.5 crore) in an all-cash deal, the company said in a stock exchange filing.
Cyient made the acquisition through its step-down subsidiary Cyient Europe Ltd on a cash-free and debt-free basis subject to closing adjustments.
The acquisition will provide Cyient with AnSem’s analog design capability, strengthen its European presence and accelerate its path to building solutions for its other business unit in medical and industrial, the company filing stated.
Cyient expects this transaction to be earnings per share accretive.
“Through this acquisition, Cyient can help its clients develop smart analog sensors to capture data, while leveraging our loT and analytics solutions to provide actionable insights," said Suman Narayan, head of the semiconductor business unit at Cyient.
Incorporated in 1998, AnSem is a spin-off of the University of Leuven and supported by Imec, a research and innovation hub in nanoelectronics and digital technologies. The Belgium-based company specialises in the development of advanced integrated circuits for wired and wireless data transmission, sensor data acquisition, ultra-low power and high-voltage applications. It has clients across industries including automotive, medical, industrial, smart home, and smart grid.
AnSem’s revenue stood at about $10 million in calendar year 2017.
Cyient is a mid-tier IT services company specialising in enterprise research and development and geospatial information systems. The company focuses on sectors such as aerospace and defense, medical, telecommunications, rail transportation, semiconductor, utilities, industrial, energy and natural resources. It has over 15,000 employees in 21 countries.
Cyient’s consolidated net sales stood at Rs 3,917.5 crore and net profit was Rs 403.1 crore for the financial year through March 2018.
Cyient’s acquisitions
In September 2017, Cyient Defense Services Inc., a step-down subsidiary of Cyient, had entered into a definitive agreement to acquire Connecticut-based B&F Design Inc. for $5.5 million.
In January 2017, Cyient acquired US-based Certon Software Inc for $7.5 million.
In November 2016, it bought UK-based Blom Aerofilms Ltd to expand its offerings in the geo-spatial space.
In October 2017, private equity firm Carlyle Group sold its entire 9.86% stake in Cyient for Rs 583 crore. This was Carlyle’s second exit from its India portfolio. The PE firm is estimated to have generated an internal rate of return (IRR) of around 25% including dividends, according to VCCircle estimates.
