HCL is planning to acquire Butler Aerospace, a company that offers engineering and design services to the U.S. aerospace and defence industry.
HCL Technologies (HCL), an IT services provider, is planning to acquire Butler America Aerospace LLC (Butler Aerospace), a company that offers engineering and design services to the U.S. aerospace and defence industry.
Butler Aerospace is a wholly owned subsidiary of Butler America LLC. The proposed transaction is for ₹566.63 crore ($85 million) to be paid in cash. Butler Aerospace had revenues of ₹569.30 crore ($85.4 million) for the year ending Dec. 31, 2015. The proposed acquisition will exclude the staffing business of Butler America Inc.
Butler Aerospace's engineering expertise lies in in the areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services, which it offers customers in the aerospace and defence industries and works with OEMs and their suppliers. According to a press statement, HCL is looking at gaining access to those clients with the large R&D spends.
Butler Aerospace has about 900 engineers and 7 design centres in the United States.
The acquisition is awaiting regulatory approvals and is expected to be completed by Dec. 31, 2016.