Tata Technologies (TTL) has signed definitive agreements to acquire U.S.-based Cambric Corporation, an engineering services company, for $32.5 million (around Rs.177 crore).
Tata Technologies provides engineering services and manufacturing enterprise IT. “The acquisition will strengthen Tata Technologies’ global footprint and domain capabilities to provide high-end engineering services to a diverse set of existing and new clients, especially in Europe,” Patrick McGoldrick, Managing Director and CEO, Tata Technologies, told a press conference.
He said the acquisition would be completed in the next few weeks. “We have undergone the formal process for a cultural fit,” he said.
Tata Technologies focuses on the manufacturing industry. It serves clients in 25 countries through six global delivery centres in Detroit (U.S.), Coventry (U.K.), Stuttgart (Germany), Bangkok (Thailand) and Pune and Bangalore.
The largest shareholder in TTL is Tata Motors with 71 per cent of equity followed by Tata Capital 12 per cent and employees and directors 12 per cent. International Tata Group entities hold 5 per cent.
Cambric has a significant presence in Eastern Europe with three development centres in Romania. Its customers include leading global players in heavy machinery, agricultural, off-highway and automotive companies. It had revenues of $25 million in 2012 with majority revenues from construction and heavy equipment sector. The acquisition will also give Cambric access to the Asia Pacific region. Mr. McGoldrick said TTL at present had around 6,200 employees and Cambric around 450. “We have an ambitious plan to increase our headcount to 20,000 people by 2017,’’ he said, adding “now we will have to see how best to scale up in Romania”.
The Rs.177-crore deal will be completed in the next few weeks