Indian IT services giant HCL Technologies on Friday said that it will acquire Butler America Aerospace for USD 85 million in cash. The accquisiton shall help HCL strengthen its market position in the aerospace and defence engineering services space.
Butler Aerospace provides engineering, design services and aftermarket engineering services to US aerospace and defence customers, providing them services in areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services.
"The consideration for the proposed transaction is USD 85 million to be paid in cash. The proposed acquisition will exclude the staffing business of Butler America Inc," the country's fourth largest IT company said in a statement.
Butler America Aerospace had revenues of USD 85.4 million for the year ended December 31, 2015. The transaction, when consummated, is likely to be EPS accretive, it added.
With over 900 engineers and seven design centres in the US, Butler Aerospace has a marque list of clients.
"The acquisition will bolster HCL's capabilities in this space and access to clients with large R&D spends," it said. The acquisition, subject to regulatory approvals including CFIUS approval in the US, is expected to be completed by December 31, 2016.