In its Biggest Buy Cyient to Acquire Finnish Firm Citec to Expand Footprints in European Market

In the largest outbound acquisition by an Indian engineering services company Hyderabad-headquartered Cyient has signed definitive agreements to acquire Citec to strengthen its presence in the energy industry with a focus on clean energy and expand its European footprint in the Nordic countries of Finland, Norway, and Sweden, and in Germany and France.

Citec is an international plant and product engineering services company serving customers across the energy, process, oil and gas, and manufacturing industries. 

The move will be the company’s largest acquisition to date, and the transaction which is in cash is expected to be completed on or before May 10, 2022, for an enterprise value of EUR 94 million on a debt free, cash free basis.

The company said that the acquisition will enhance its position as a leader in the plant and product engineering sector. 

Post acquisition, the combined portfolios of the two organisations will be one of the largest independent plant engineering capabilities globally.

This will enable customers to leverage a comprehensive set of services and offerings such as plant engineering, digital solutions, product engineering, consulting, and technical documentation. And the synergies from these combined portfolios will provide the scale, expertise, resources, and access to new capabilities that can be offered to customers.
 
Commenting on the proposed acquisition, Krishna Bodanapu, Managing Director and CEO, Cyient, said, "We are already enabling our customers to accelerate their digital industrial transformation with our INTELLICYIENT suite of solutions. This acquisition will allow us to take our combined Plant Engineering and Digital Solutions portfolio to a new set of customers who have extensive manufacturing facilities globally. Citec's strong brand value and talent pool, especially in the Nordic region, will be integral to Cyient gaining a strong foothold in the region and accelerating our future growth."
 
"I am truly happy that Citec partners with Cyient," said Johan Westermarck, CEO, Citec. "The joint journey starts now, and we are excited to build a strong future together step by step. The large international organization of Cyient, with more than 14,000+ experts, enables new offerings to our customers, as well as new opportunities for our employees. Through Cyient, we can provide customers a much more comprehensive set of services and solutions, such as the utilization of Cyient's strong digital offering", said Johan.