Cyient to acquire Citec for 94 mln euros

25 Apr 2022 , 04:22 PM

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 company will acquire Citec at an enterprise value of 94 million euros (over Rs 770 crore) on a debt free, cash free basis. The acquisition will be EPS accretive, Cyient said in a statement.

This acquisition will enhance Cyients 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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