This will be the largest outbound acquisition by an Indian engineering services company and Cyient's largest acquisition to date.
Cyient has signed definitive agreements to acquire Finland-based Citec, an international plant and product engineering services company serving customers across the energy, process, oil and gas, and manufacturing industries. The all-cash transactions are expected to be completed on or before 10 May 2022.Citec has 1200 employees globally and has strong core competences in plant engineering, product engineering, technical documentation and consulting. It generated revenues of 80 million euros (2021), 73 million euros (2020) and 78 million euros (2019) in the last three years.
The acquisition will be executed at an enterprise value of 94 million euros (over Rs 770 crore) on a debt free, cash free basis. This translates to Cyient's 1.2x of 2021 revenue and 6.3x of 2021 reported EBITDA. The acquisition will be accretive on EPS (from year 1 onwards) and EBIT margin (except for year 1 due to one time integration cost), Cyient said in a statement.
This acquisition will enhance Cyient's position as a leader in the plant and product engineering sector, strengthen its presence in the energy industry with a focus on clean energy and expand its European footprint in the Nordic countries of Finland, Norway, and Sweden, and in Germany and France. The combined portfolios of Cyient and Citec will be one of the largest independent plant engineering capabilities globally.
Cyient is a global engineering and technology solutions company. Its consolidated net profit rose 17% to Rs 154.20 crore while revenue declined 0.19% to Rs 1,181.20 crore in Q4 FY22 over Q3 FY22.
Shares of Cyient fell 1.43% to settle at Rs 905.30 on the BSE today.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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