Cyient to acquire majority stake in Rangsons Electronics
02 Jan 2015
Cyient Ltd (formerly Infotech Enterprises) has signed a definitive agreement to acquire 74 per cent equity stake in Rangsons Electronics Pvt Ltd in an all-cash transaction. The proposed acquisition is Cyient's third in less than a year.
Mysore-headquartered Rangsons Electronics is an electronics system design and manufacturing services company. However, the acquisition amount was not disclosed.
The acquisition will help Cyient to expand into high-technology and high-value, design-led systems and solutions in line with the company's S3 (services, systems and solutions) strategy, it said in a statement.
Rangsons Electronics is a qualified supplier to global OEMs across defence and aerospace, medical, automotive, telecommunications and industrial segments.
"With its strong domain expertise coupled with a comprehensive solution portfolio, industry-relevant processes, certifications and global customers, Rangsons Electronics fits extremely well in Cyient's business. The new relationship will help Cyient expand its core business while deepening partnerships with OEM customers,'' said Krishna Bodanapu, managing director and chief executive officer at Cyient.
''I look forward to working closely with the Rangsons team to achieve the maximum synergy from this acquisition, and believe that this will make our offerings even more attractive to our customers,'' he added.
The acquisition will also help Cyient to position itself as a strong offset partner. Further, integrated end-to-end capabilities would strengthen the company's contribution to the 'Make in India' programme announced recently by the union government.
''We have found a complementary partner in Cyient, who has built a global engineering solutions business backed by strong technology and ethos,'' said Pavan Ranga, CEO at Rangsons Electronics.
In 2014, Cyient acquired Softential, a US-based end-to-end IT service management and assurance solution vendor, and Invati Insights, a start-up data sciences company.