IT company Cyient to acquire Finland-based Citec for nearly Rs 800 cr

IT company Cyient will acquire global plant and product engineering services company Citec for about Rs 800 crore to strengthen its business offerings.

Citec was founded in 1984, as an international plant and product engineering services company serving customers across the energy, mining, process, oil and gas, and manufacturing industries. It has 1,200 employees globally.

Cyient said that it will be the largest outbound acquisition by an Indian engineering services company and even the company's largest acquisition to date.

The acquisition will be completed during the quarter.

"This acquisition will enhance Cyient's 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," Cyient said.

As per a regulatory filing the transaction value is approximately Rs 800 crore and it will be an all-cash deal.

"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," Cyient managing director and CEO Krishna Bodanapu said in a statement.

In 2021, Citec had revenue of 80 million euro (about Rs 660 crore at present exchange rate).

"The large international organization of Cyient, with more than 14,000 experts, enables new offerings to our customers, as well as new opportunities for our employees. Through Cyient, we can provide customers a much more comprehensive set of services and solutions, such as the utilization of Cyient's strong digital offering," Citec CEO Johan Westermarck said.