Altran buys out Aricent from KKR for $2 billion
Aricent has over three fourths of its workforce in India
Paris-based technology company Altran said it would buy engineering services firm Aricent from a group of investors led by KKR for $2 billion. US-based Aricent has over 10,500 people, a majority of them in India centres. It competes with HCL Technologies, Wipro, TCS and Tech Mahindra to service clients globally. writes
Paris-based technology company Altran said it would buy engineering services firm Aricent from a group of investors led by KKR for $2 billion.
The US-headquartered Aricent has over 10,500 people, majority of them in its India centres. The firm competes with Indian IT service providers such as Wipro, HCL Technologies, Tata Consultancy Services and Tech Mahindra to service clients globally.
Altran has previously acquired Bengaluru-based product engineering company GlobalEdge Software, Punebased Pricol Technologies and Bengalurubased Sicon Design Technologies.
With this acquisition, Altran is expected to complete the operational and financial objectives of Altran 2020 Ignition plan as early as 2018, and will be in a position to accelerate and capture emerging demand and new opportunities, said the company.
This acquisition is expected to generate 150 million of additional revenues translating into 25 million Ebitda (earnings before interest, taxes, depreciation, and amortisation) run-rate synergies and 25 million of delivery and cost synergies, Nasadq-listed Altran said.
“Altran will now have superior scale and scope, and now masters all four critical criteria necessary to lead the industry: a global presence and reach, leadership across most industries, strong expertise in key technology domains and a superior global delivery supply chain,” said Dominique Cerutti, chairman and chief executive officer of the Altran Group in a statement.
Aricent was earlier known as Flextronics comprising Delhi-based Hughes Software Systems and Chennaibased Future Software Communications. The company was acquired by KKR almost a decade ago for almost $900 million and has an employee base of about 10,500, most of which is in India. It has operations in Chennai, Gurugram, Hyderabad and Bengaluru.
Aricent was one of the first investments by New York-based KKR in India.
“We are well-positioned to merge our engineering and design capabilities with those of Altran to create a global leader in R&D engineering services with enormous scale, unparalleled capability, and unique and differentiated innovation. We look forward to working closely with Dominique Cerutti and his leadership team to bring even greater value to our clients,” said Frank Kern, chief executive officer, Aricent.
Aricent brings design and engineering capabilities to help its clients get to market faster, transform legacy products to digital, and create new revenue opportunities.