IT services major HCL Technologies has said that it will acquire Butler America Aerospace for $85 million in cash, a move aimed at strengthening its position in the aerospace and defense engineering services space. Butler Aerospace provides engineering, design services and aftermarket engineering services to US aerospace and defense customers, providing those services in areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services. Also Read - HCL acquires data management platform DatawaveAlso Read - HCL launches AI-powered services for enterprises
“The consideration for the proposed transaction is $85 million to be paid in cash. The proposed acquisition will exclude the staffing business of Butler America,” the country’s fourth largest IT company said in a statement. Butler America Aerospace had revenues of $85.4 million for the year ended December 31, 2015. The transaction, when consummated, is likely to be EPS accretive, it added.
With over 900 engineers and seven design centers in the US, Butler Aerospace has a marquee list of clients. “The acquisition will bolster HCL’s capabilities in this space and access to clients with large R&D spends,” it said. The acquisition, subject to regulatory approvals including CFIUS approval in the US, is expected to be completed by December 31, 2016. ALSO READ: HCL partners Symantec to help enterprises address cyber threats