Definitive agreement signed for the over Australian dollar 11.6 million transaction
Engineering and digital technology solutions firm from Hyderabad with a growing global footprint Cyient is acquiring Australian consulting firm IG Partners in an over Australian dollar 11.6 million cash deal.A definitive agreement under which wholly owned subsidiary Cyient Australia will acquire 100% equity of the specialist consultancy has been signed, Cyient said on Monday.Coming amid Cyient’s growing presence in Australia as a solution provider to the mining, oil and gas, rail, telecom and utility industries, the acquisition is expected to strengthen its digital capabilities in the energy and mining industry. The “rationale for acquisition are gaining access to decision makers with global mining majors, acceleration in Cyient’s mining strategy and positioning Cyient as a digital transformation leader in the market,” the company said in the filing to the stock exchange.On the cost of acquisition, Cyient said it will be for an upfront payment of Australian dollar 11.6 million (around ₹62.52 crore) on a cash free and debt free basis and earn outs based on future performance.A technology consultancy founded in 2012, the Melbourne-headquartered IG Partners is into enabling organisations deliver on their strategy by removing organisational impediment or embedding effective ways of working. It has presence in Australia, South Africa, Singapore and Chile. The consultancy had revenues of Australian dollar 14.8 million in FY20.Cyient said customers of IG Partners include large mining players, including multiple Fortune 500 companies. All its key management personnel will stay with the business under Cyient ownership. IG Partners employs about 40 employees and consultants.The transaction, subject to approval from Australia’s Foreign Investment Review Board (FIRB), is expected to take upto six months for completion.Cyient’s MD and CEO Krishna Bodanapu said mining industry is getting transformed with convergence of digital technologies. The synergy of Cyient’s digital execution capabilities and IGP’s advisory expertise will create a unique value proposition for the industry.“This acquisition also adds to our footprint in Australia, which is an important region for our future growth,” he said in a statement.Founder and Managing Partner of IG Partners Herman Kleynhans said “our team welcomes the firm’s proposed acquisition by Cyient as a transformative moment for both businesses.”
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