By 27 September, 2017
Carrier International exits Cyient, sells remaining stake for $100 mn
Photo Credit: Manni Das/VCCircle

Carrier International (Mauritius), a subsidiary of Connecticut-headquartered United Technologies Corporation (UTC), has sold its remaining stake in Cyient Ltd for around Rs 650 crore ($100 million), the Hyderabad-based engineering design firm said in a stock-exchange disclosure.

Norway's sovereign wealth fund Government Pension Fund Global, and Indian mutual funds, including DSP BlackRock Small and Mid Cap Fund and two Birla Sun Life schemes, were among the buyers.

The transaction followed a partial exit made by Carrier in June. At that point, Carrier had made approximately Rs 793 crore. UTC had first invested in Cyient in 2002.

Cyient, which is backed by global private equity firms Carlyle and ChrysCapital, reported consolidated revenues of Rs 3,699.7 crore for 2016-17. It services clients in the aerospace, consumer goods, energy, medical, mining, semiconductor, rail transportation, telecommunication and utilities industries.

"Their decision to divest stood testimony to the growth of the company over the years and justified the prudence of the investment made therein," Cyient CEO Krishna Bodanapu said.

The firm has been consolidating its business through acquisitions and divestments.

Earlier this month, Cyient Defense Services Inc., a step-down subsidiary of Cyient, had entered into a definitive agreement to acquire Connecticut-based B&F Design Inc. for $5.5 million. Cyient also sold its over 49% stake in its joint venture with Pratt & Whitney.

In February, Cyient Inc had acquired US-based Certon Software Inc for a consideration of $7.5 million while, in November 2016, Cyient had acquired UK-based Blom Aerofilms Ltd to expand its offerings in the geo-spatial space.

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