Product engineering solutions provider AXISCADES Engineering Technologies Ltd is set to acquire specialised embedded technology company Mistral Solutions Pvt. Ltd for Rs 175 crore ($27 million), the company said in a stock exchange disclosure.
The acquisition will be completed in a phased manner. The current founders and management team of Mistral will continue to run the operations.
The transaction is expected to enhance AXISCADES offerings to original equipment manufacturers and defence customers, besides expanding its client base, the company said.
“Our objective is to create significant value for our shareholders and acquisitions are an important aspect of our growth strategy. This acquisition of Mistral helps us to be a significant player in defence offset and digital technologies. The synergy between AXISCADES and Mistral offers both parties the impetus to create IPs and broaden our service offerings, which will lead to substantial business growth,” said Sudhakar Gande, vice-chairman, AXISCADES.
“For us, this is a strategic partnership. We have complementary capabilities and customers that we can cross-leverage,” said Mistral co-founder and president Anees Ahmed.
Bengaluru-based Mistral was co-founded by Ahmed and Rajeev Ramachandra in 1997. It employs 300 people across India and the US. In 2016-17, the company had posted revenues of Rs 132 crore. It specialises in end-to-end product engineering and embedded solutions for aerospace, defence, industrial, consumer, wearable, medical and semiconductor verticals.
AXISCADES, which also has its headquarters in Bengaluru, is a product engineering solutions company, catering to aerospace, defence, heavy engineering, automotive, energy, medical and healthcare sectors. It has 14 engineering centres worldwide, including North America, Europe and Asia. In 2016-17, AXISCADES’ consolidated income was at Rs 499 crore with net profit of Rs 13.5 crore.
