HCL Technologies gains after completion of Butler Aerospace acquisition

The stock was up 3% to Rs 860 on the NSE in intra-day trade

HCT Technologies has moved higher by 3% to Rs 860 on the National Stock Exchange (NSE) after the company announced the completion of the acquisition of Butler America Aerospace, LLC with effect from Tuesday, January 3, 2017.

On October 21, 2016, the information technology (IT) company had entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers.

 “The consideration for the proposed transaction was USD 85 million to be paid in cash. Butler Aerospace had revenues of $85.4 million for the year ending Dec 31, 2015 at EBIT of 12.2%. The transaction when consummated is likely to be EPS accretive,” HCL Technology said in a release.

Butler Aerospace is a wholly owned subsidiary of Butler America LLC. The proposed acquisition will exclude the staffing business of Butler America Inc.

Since then, the stock outperformed the market by gaining 5% as compared to 4.5% decline in the Nifty 50 index and 1.3% gain in Nifty IT index. The stock is trading at close to its 52-week high of Rs 890 touched on February 1, 2016 in intra-day trade.