Engineering design services major Cyient Ltd. has decided to divest the 49% equity it holds in Infotech Aerospace Services Inc. (IASI) to Pratt & Whitney, which already holds the remaining 51%.
Agreement signed
A definitive agreement has been signed, Cyient said on Thursday.
“We continue to embark on the journey towards realisation of our design-build-maintain strategy,” said Krishna Bodanapu, CEO and MD, Cyient.
“To enable greater focus on the strategy, we have been exiting the non-core businesses,” he said. This is the second divestment post the sale of Infotech Enterprises IT Services (IEITS), which happened in October 2015 as a part of Cyient’s strategy to exit IT services business. “This divestment is a step in the right direction… we will continue to evaluate and rebalance our business portfolio,” he said.
IASI, a joint venture between Pratt & Whitney and Cyient, was established in 2003 and provides aerospace defence design, development and related services, primarily to United Technologies and its business units. Pratt & Whitney is a division of United Technologies Corporation.
The transaction would be EPS neutral and its closing is subject to regulatory approvals and customary closing conditions, Cyient said.
