Noida-based HCL Technologies (HCL), a leading global IT services provider, today said it has entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US aerospace and defence customers.
HCL said it will be paying $85 million in cash as consideration for the proposed transaction.
Butler Aerospace is a wholly owned subsidiary of Butler America LLC. The proposed acquisition will exclude the staffing business of Butler America Inc.
Butler Aerospace provides engineering and design services in the areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services, primarily to customers in the aerospace and defence industries in the US.
With over 900 highly skilled engineers and 7 design centers in the US, Butler Aerospace has a marquee list of clients in the aerospace and defence industries and works with OEMs and their suppliers. The acquisition will bolster HCL's capabilities in this space and access to clients with large R&D spends, HCL stated in a release.
Against the proposed transaction price of $850 million, to be paid in cash, Butler Aerospace had reported revenues of $85.4 million for the year ended 31 December 2015 at EBIT of 12.2 per cent. The transaction when consummated is likely to be EPS accretive.
The acquisition is subject to regulatory approvals including CFIUS approval in the US, along with other customary closing conditions. It is expected to be completed by 31 December 2016.
HCL Technologies, a leading global IT services company, along with its subsidiaries, today operates out of 32 countries and had consolidated revenues of $6.6 billion, for 12 Months ended 30 September 2016.