Cyeint Acquires CERTON Softwares

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Cyeint acquires CERTON softwares

A brief analysis
About Cyient

Cyient (formerly Infotech Enterprises) is a global solutions provider focused on engineering,


manufacturing, data analytics, and networks & operations. Infotech Enterprises Ltd. was established
in 1991 in Hyderabad, India.

Infotech Enterprises rebranded as Cyient in 2014. It had 12,000+ employees across 38 global
locations as of March 2014. The company featured among the top 30 outsourcing companies in the
world as of 2014.

Revenues: 3700 Crore (2017)


About CERTON Softwares

Based in Melbourne, Florida, USA, with a core team of around 45 people and incorporated in 2006,
CERTON is an IP-led, innovative provider of full product life-cycle engineering services to companies
seeking certification approval for safety-critical products.These solutions cater primarily to the
Aerospace and Defense industry, but also in the Medical and Transportation sectors.

Revenues: 41 Crore
About the merger

● The deal involves a payment of $7.5 million

● It is the fifth acquisition by Cyient in two-and-a-half years

● The transaction did not need regulatory approvals


Reasons for merger
1. CERTON will strengthen Cyient’s business
2. It will support their manufacturing services and enhance their competencies in
the Medical and Transportation industries
3. CERTON will benefit from Cyient’s global reach, financial strength, and
engineering expertise to provide customers an unprecedented Design Led
Manufacturing (DLM) offering in the Aerospace and Defense, Medical and
Transportation industries
4. This acquisition will enable Cyient to create a differentiated value proposition
in Avionics that aligns with their Aerospace and Defense strategy
Synergies

1. Cyient has an established client base of 300, CERTON will improve upon
Cyient’s current capabilities
2. Faster Critical-systems delivery to clients in defense, aerospace, medical,
etc
3. Cyient has strong presence in the avionics industry, and CERTON will
support their manufacturing services
4. Along with the 4 other acquisitions, Cyient is expanding its business into a
D-B-M Company
Challenges

1. Adequate utilization of the capabilities of CERTON


2. Cyient being and Indian company, acquiring a US based company raises a
cultural difference
3. Cyient has acquired 5 companies in 3 years, with so many subsidiaries, it
will be challenging to manage and coordinate between them
4. CERTON is a defense software manufacturer; With Cyients major client
base in India, will CERTON be able to tap a foriegn market in aerospace,
healthcare and even defence industry?
My views

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