)
Tata Technologies, provider of engineering services and manufacturing enterprise IT, today announced that it has signed definitive agreements for the acquisition of US-based Cambric Corporation, an engineering services company providing turnkey solutions to its customers, for $32.5 million (around Rs 175 crore).
Cambric had revenues of $25 million as of December 31, 2012 with majority of revenues coming from the Construction and Heavy Equipment sector. The company provides system level engineering and design capabilities in engine, power train, chassis/structures, body, electrical and hydraulic systems to its global customers. Cambric is a privately held company with private equity investors holding majority stake in the company.
This partnership will strengthen Tata Technologies’ global footprint and domain capabilities to provide high-end engineering services to a diverse set of existing and new clients, especially in Europe. It will also provide Cambric access to the Asia Pacific region.
Cambric is a US headquartered company with a significant footprint in Eastern Europe. The company has three development centres in Romania and its customers represent sectors like heavy machinery, agricultural, off-highway and automotive companies. This will give Tata Technologies access to 450 engineers in Romania and the US.
“Cambric gives our customers in the Construction and Heavy Equipment as well as in the Automotive sector access to specialists in this field as well as an access to Cambric’s powertrain expertise. Additionally, Cambric’s customers will have access to Tata Technologies’ footprint in Asia Pacific and complementary capabilities including embedded systems, enterprise IT and extensive automotive domain experience,” said Patrick McGoldrick, Managing Director and CEO, Tata Technologies.
Patrick McGoldrick. Tim Hayes, CEO, Cambric, said; “We are excited to become a part of Tata Technologies ambitious growth strategy and look forward to providing our customers the added breadth, depth and global footprint that the combined entity will provide. We will now have similar engineering capability in the Asia Pacific region to supplement our significant Romanian and US presence.”
Cambric was advised by Rothschild and Holland & Hart. The transaction is subject to customary closing conditions.
