Software engineering and services provider Cyient Ltd said it has invested in Israeli rail cybersecurity firm Cylus Ltd, in line with its strategy of developing mobility solutions.
The move will also enable the two companies to jointly address market requirements for the industry as well as develop security technologies together, said an exchange filing by Hyderabad-based Cyient, which did not disclose the financial details of the deal.
Cyient senior vice-president for rail transport Prabhakar Atla said the investment would allow the company to strengthen its value proposition with respect to the efficient design, construction and security management of rail assets.
Cylus co-founder and chief executive Amir Levintal said his company would scale up its team and expand its global presence. He added that rail systems were coming under constant threat of cyberattacks, and that Cylus had already established “strong relationships with key players in the rail industry”.
Shares of Cyient were trading 0.84% up at Rs 566.3 apiece at the time of publication.
Cylus, led by veterans from Israel Defense Forces’ intelligence corps, says it helps its clients avoid service disruptions and safety incidents caused by cyberattacks. The company uses its proprietary platform, CylusOne, to detect cyber threats.
Founded in 1991, Cyient focuses on industries such as aerospace and defence, healthcare, telecommunications and semiconductors. It has over 15,000 employees in 20 countries.
In January, the company signed an agreement to acquire the 26% stake it did not already own in Cyient DLM Pvt. Ltd (formerly Rangsons Electronics Pvt. Ltd), its electronics system design and manufacturing unit. Cyient had said it would pay Rs 42.5 crore (around $5.95 million then) to buy out the balance stake from the NR Group and take full control of the unit.
Cyient made a similar buyout in May last year, acquiring the 49% stake it did not already own in Cyient Insights Pvt. Ltd for $515,777 (around Rs 3.5 crore then) in cash. Cyient Insights was 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. It had paid Rs 8.79 crore for the stake, according to its 2015 annual report.
