Listed engineering and software services company Cyient Ltd has signed a definitive agreement to fully acquire Australia-based technology consultancy Integrated Global (IG) Partners Pty Ltd.
Hyderabad-based Cyient (formerly Infotech Enterprises) will pay 11.6 million Australian dollars ($8.5 million or Rs 62 crore) in an all-cash deal, the company informed stock exchanges on Monday. The deal value excludes IG Partners’ cash and debt.
Melbourne-based IG Partners operates as a management consulting company. It offers board and governance advisory, asset optimisation, operations, and management services to clients in Australia, Chile, South Africa, and the United Kingdom, and Singapore.
Cyient is carrying out the acquisition through its wholly-owned Australian subsidiary Cyient Australia Pty Ltd and expects the deal to complete in six months subject to a regulatory approval in Australia.
It is aiming to gain access to decision-makers with some of the global mining majors, accelerate its mining strategy and position itself as a digital transformation leader in the mining industry.
BHP is the world’s largest mining group headquartered in Melbourne, while the world’s second-largest mining company Rio Tinto is based in London with shares listed in the UK and Australia.
IG Partners has a staff strength of 40 employees and reported a revenue of 14.8 million Australian dollars for 2019-20 (July-June) compared with 10.3 million Australian dollars for 2018-19 and 15.1 million for 2017-18.
Shares of Cyient declined 3.23% on the BSE on Monday to close at Rs 388 apiece. The stock has traded at a high of Rs 514 and low of Rs 184.15 over the past year, stock-exchange data showed.
The company counts UK’s First State Investments ICVC and Singapore-based India-dedicated fund Amansa Holdings Pvt. Ltd among its institutional investors. Some of its past investors include private equity firms ChrysCapital and Carlyle Group.
Cyient’s purchase of IG Partners is the 10th such in nearly eight years.
Led by executive chairman BVR Mohan Reddy, Cyient offers engineering and network solutions including product development and life-cycle support.
Founded in 1991, it is a supplier to global original equipment makers (OEMs) in defence and aerospace, medical, automotive, telecommunications, and industrial segments. Cyient has over 15,000 employees in 20 countries.
In June last year, the company invested in Israeli rail cybersecurity firm Cylus Ltd, in line with its strategy of developing mobility solutions.
In January last year, Cyient bought the balance stake in an electronics system design and manufacturing unit after announcing the acquisition in early 2015.
The acquisition was part of Cyient's S3 (services, systems and solutions) strategy to expand into high-technology and high-value, design-led systems and solutions.
Cyient made a similar move in May 2018, acquiring the 49% stake it did not already own in Cyient Insights Pvt. Ltd, earlier known as Invati Insights Pvt. Ltd. Cyient had acquired a 51% stake in the Hyderabad- and Michigan-based data sciences company in October 2014.
In September 2017, it had announced the acquisition of Connecticut-based B&F Design Inc. in an all-cash deal via its step-down subsidiary Cyient Defense Services Inc.
It had acquired US-based IT services manager Softential Inc in early 2014.