<article>Technology firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/cyient" target="_blank">Cyient Ltd</a> on Tuesday announced that it has signed a definitive agreement, through its wholly owned subsidiary Cyient Inc, to acquire 100 per cent shares of US-based <a style="color: #000080;" href="http://dealstreetasia.com/tag/certon" target="_blank">CERTON</a>.</article>

Technology firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/cyient" target="_blank">Cyient Ltd</a> on Tuesday announced that it has signed a definitive agreement, through its wholly owned subsidiary Cyient Inc, to acquire 100 per cent shares of US-based <a style="color: #000080;" href="http://dealstreetasia.com/tag/certon" target="_blank">CERTON</a>.
The deal involves payment of $7.5 million on a &#8220;cash free and debt free basis subject to closing adjustments&#8221;, the company said in filing to the stock exchanges. The remaining part will be through &#8220;deferred payment and earn out based on future performance,&#8221; it added.
The transaction would be EPS accretive.
Hyderabad-based Cyient provides engineering services to companies in aerospace, consumer, energy, medical, oil and gas, mining, heavy equipment, semi-conductor, rail transportation, and utilities and communications sectors.
This acquisition comes close on the heels of Cyient&#8217;s buyout of UK-based geospatial services provider<a style="color: #000080;" href="http://dealstreetasia.com/tag/blom-aerofilms" target="_blank"> Blom Aerofilms Ltd</a>, in an all-cash transaction in November last year. This latest deal marks the firm&#8217;s fifth acquisition in the last two and a half years as part of its &#8220;design-build-maintain strategy&#8221;.
With a strong cash position of $127 million, Cyient said it will continue to scout for acquisitions.
US-based CERTON is an IP-led provider of full product life-cycle engineering services to companies seeking certification approval for safety-critical systems, embedded software, and electronic hardware. Founded in 2006, CERTON employs a core team of around 45 people, with revenue at the current run rate of $6 million, according to a company release.
&#8220;This acquisition will enable Cyient to create a differentiated value proposition in Avionics that aligns with our Aerospace and Defense strategy of becoming a key Design Led Manufacturing (DLM) player in this space. We expect the industry to have continued investment in avionics driven by technology changes and obsolescence and this acquisition will aid Cyient in strengthening our presence in the avionics market,&#8221; said Anand Parameswaran, Cyient’s Senior Vice President and BU Head for Aerospace and Defense.
Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/cyient-acquires-uk-based-geospatial-firm-blom-aerofilms-57514/" target="_blank">India: Cyient takes over UK geospatial firm Blom Aerofilms</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/it-firm-cyient-acquires-gs-engineering-asia-from-pratt-whitney-9499/" target="_blank">IT firm Cyient acquires GS Engineering Asia from Pratt &amp; Whitney</a>

Cyient Ltd today said that it has agreed to acquire 100 per cent of the shares of US-based CERTON.

India: Tech firm Cyient to acquire US-based CERTON

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India: Tech firm Cyient to acquire US-based CERTON

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