Cyient will pay Rs 42.5 crore to buy out the balance stake from the NR Group and take full control of the unit.
Listed engineering and software services company Cyient Ltd has signed a definitive agreement to acquire the 26 per cent stake it did not already own in Cyient DLM Pvt. Ltd (formerly Rangsons Electronics Pvt. Ltd), its electronics system design and manufacturing unit.
Hyderabad-based Cyient (formerly Infotech Enterprises) will pay Rs 42.5 crore ($5.95 million at current exchange rates) to buy out the balance stake from the NR Group and take full control of the unit, the company informed the stock exchanges on Tuesday.
The cash transaction values Cyient DLM’s equity at Rs 163.5 crore (nearly $23 million), VCCircle estimates show.
Cyient, led by executive chairman BVR Mohan Reddy, had announced in January 2015 that it would acquire 74 per cent stake in Mysuru-headquartered Rangsons Electronics from the NR Group. The stake purchase concluded the following month.
The acquisition is part of Cyient’s S3 (services, systems and solutions) strategy to expand into high-technology and high-value, design-led systems and solutions.
Cyient had also announced in September 2017 that it would acquire Connecticut-based B&F Design Inc. in a cash deal via its step-down subsidiary Cyient Defense Services Inc.
It had previously acquired, among other deals, US-based end-to-end IT services management solutions provider Softential Inc and data sciences startup Invati Insights. Both acquisitions took place in early-2014.