Wednesday, May 18, 2022
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Cyient clinches its largest deal with acquisition of Finnish player Citec for 94 million euro

HYDERABAD: In what is being touted as the largest outbound acquisition by an Indian engineering services company and Cyient’s largest acquisition to date, the Hyderabad based tech solutions provider is acquiring 100% stake in Finnish plant and product engineering services company Citec at an enterprise value of Euro 94 million on a debt-free cash-free basis.
Cyient on Monday said it has inked definitive agreements to acquire the Finnish international plant and product engineering services player that serves customers across the energy, process, oil and gas, and manufacturing industries in an all-cash deal.
“Cyient Europe Ltd, a wholly owned subsidiary of Cyient Ltd entered a definitive agreement with Sentiec Oyj, Finland, which is the parent entity of Citec and Cyient limited entered a definitive agreement with Citec Engineering India Private Limited, India which is a wholly owned subsidiary of Citec,” Cyient said in a regulatory filing.
The all-cash transactions are expected to be completed on or before May 10, 2022, Cyient informed the bourses.
Cyient said the acquisition will enhance its 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.
Currently Cyient does not have a presence in the Nordic region and this acquisition will help it strengthen its European presence and add close to 600 members to its existing team in Europe, it said.
“The combined portfolios of Cyient and Citec will be one of the largest independent plant engineering capabilities globally. This will enable customers to leverage a comprehensive set of services and offerings such as Plant Engineering, Digital Solutions, Product Engineering, Consulting, and Technical Documentation,” Cyient said, adding that the synergies from these combined portfolios will provide the scale, expertise, resources, and access to new capabilities that can be offered to customers.
Commenting on the proposed acquisition, Krishna Bodanapu, managing director and CEO, Cyient, said, “This acquisition will allow us to take our combined plant engineering and digital solutions portfolio to a new set of customers who have extensive manufacturing facilities globally. Citec’s strong brand value and talent pool, especially in the Nordic region, will be integral to Cyient gaining a strong foothold in the region and accelerating our future growth.”
“The combined capabilities will also help the Citec team to offer new solutions offerings to their existing clients by leveraging the capabilities of Cyient such as Digital engineering, Geo spatial engineering, testing, manufacturing,” Cyient added.




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