Techwave to acquire Cyient's IT services arm
Techwave Consulting Inc, a US-based systems integrator with strengths in cloud computing and social media analytics, has agreed to acquire the IT services unit of Hyderabad-based Cyient (formerly Infotech Enterprises) for an undisclosed amount.
The deal to acquire Infotech Enterprises IT Services Pvt Ltd (IEITS) will enhance Techwave's global capabilities in Asia Pacific and Europe while allowing Cyient to focus on its core engineering services, data, network and operations businesses, as per a press statement.
In a regulatory filing yesterday, Cyient said it is looking to sell 100 per cent holding in IEITS, which provides services around consulting, platform-based services, e-commerce, remote infrastructure management and others.
"This is another key step in building a global and competitive IT services organisation with the best-in-class workforce and this will reinforce our market leadership and accelerate growth in all regions. This is a step towards realising our revenue and headcount growth targets for FY 2016 and beyond," said Raj Gummadapu, COO of Techwave.
The $50-million Techwave has been investing in SMAC (IoT, social media, mobile, analytics and cloud) and digital solutions. It provides advisory, ERP implementation services, enterprise process management, business intelligence and other services to global clients. Techwave recently opened its second office in Hyderabad at an investment of $3 million.
Led by BVR Mohan Reddy (executive chairman), Cyient is an engineering and network solutions firm that provides solutions including product development and life-cycle support. The company is a qualified supplier to global OEM's across defence and aerospace, medical, automotive, telecommunications, and industrial segments. It counts Carlyle and ChrysCapital among institutional shareholders.
In July, Cyient acquired Singapore-based Global Services Engineering Asia from aerospace engine manufacturer Pratt & Whitney for an undisclosed amount. Earlier this year, Cyient agreed to buy 74 per cent equity stake in Mysore-headquartered Rangsons Electronics Pvt Ltd, an electronics systems design and manufacturing (ESDM) services company, in order to diversify its engineering services business.