Cyient shines on acquisition of US based company

Cyient, a wholly-owned subsidiary of Cyient Inc. US, has signed a definitive agreement to acquire 100 per cent equity in Certon Software, Melbourne in Florida, USA, in an all cash transaction. The company will acquire Certon Software with cash deal of Rs 51 crore and debt-free status of the company. It will make deferred payment and its earnings will be based on future performance.

Cyient’s transaction will further strengthen the automation in its key verticals of aerospace and defence in line with its strategy for growth. The company will conclude acquisition in the next 30 days.

On the financial front, Certon Software has delivered revenue of Rs 42.22 crore in CY14. The company posted revenue of Rs 49.7 crore in CY15. It has a presence in the US. Cyient’s topline will get a boost of about Rs 50 crore in forthcoming financial year due to this acquisition.

The share price of Cyient increased 5.72 per cent on the bourses in early trades and is trading at Rs 483.65 on an intra-day basis. The IT companies may face heat from the newly US elected president Trump’s policies. Going forward, most of the cash-cushioned IT companies may get involved in acquisitions to remain in competition.