Information technology firm HCL Technologies is set to acquire Butler America Aerospace for $85 million (Rs 565 crore approximately) in cash, reported PTI. The proposed acquisition requires regulatory approvals from The Committee on Foreign Investment in the United States and others. It is likely to be completed by December 31.
The company issued a statement on Friday, saying that the proposed acquisition will exclude the staffing business of Butler America Inc, which provides engineering and design services and aftermarket engineering service to customers in the aerospace and defence sectors of United States. "The acquisition will bolster HCL's capabilities in this space and access to clients," said the IT major.
Butler Aerospace is a wholly-owned subsidiary of Butler America LLC and had revenues of $85.4 million (Rs 568 crore approximately) till December 31, 2015, reported Livemint. It has more than 900 engineers and seven design centres across the US. According to PTI, the transaction will be an EPS accretive, which will increase HCL's earnings per share.
The news comes amid a major rejig within HCL Technologies. On Friday, the company announced that its Chief Executive Officer, Anant Gupta, has resigned and that the current Chief Operating Officer, C Vijayakumar, has taken over the post. The company told PTI that Vijayakumar has been made the president and CEO of the IT major with immediate effect.
HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar (pictured above) said, "Vijay has been a transformational leader in the company leading from the front. His vision and flawless execution track record best positions him for taking our journey forward."