HOME > BUSINESS > Cyient sells stake in Pratt & Whitney JV

Cyient sells stake in Pratt & Whitney JV

IT company Cyient said it signed an agreement to divest its 49% equity ownership in IASI, its joint venture with Pratt & Whitney, as it exits its IT services business.

The Indian company will get $1.8 mln for the stake from United Technologies Corporation, the buyer, after a dividend disbursement of $9.1 mln from the cash reserves, the company said. It wasn’t clear whether Cyient would get all of the $9.1 mln dividend or 49% of it.

The unit had contributed Rs 11.8 cr to Cyient’s net profit in the last financial year.

IASI provides aerospace defence design, development & related services, primarily to United Technologies and its business units.

Cyient owns 49% of the company, which was established in 2003 at Isabela, Puerto Rico.

The transaction would be EPS neutral, the Mumbai-based company said.

The closing of the transaction is subject to regulatory approvals and customary closing conditions, it added.

Krishna Bodanapu, Chief Executive Officer and Managing Director, Cyient said the move was part of the company’s decision to focus on core operations under its “Design-Build-Maintain” strategy.

“To enable greater focus on the strategy, we have been exiting the non-core businesses,” he said.

This is the second divestment after the sale of Infotech Enterprises IT Services (IEITS) that the company did in October of 2015 as a part of its strategy to exit the IT services business.

“This divestment is a step in the right direction and will aid usin becoming more focused striding towards achieving our vision. We will continue to evaluate and rebalance our business portfolio,” Bodanapu added.

The company was earlier known as Infotech Enterprises Ltd and 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 and was counted among the top 30 outsourcing companies in the world at the time.

Follow ULTRA.news
Wipro wins seven-year deal from European utilities co Innogy IT services provider Wipro said it has been awarded a seven-year contract by European energy company Innogy SE to manage their data center and cloud services.Wipro will help the company, which focuses on renewables, grid & infrastructure and retail, to rationalize, virtuali...
Wipro’s IT to power McLaren’s sports car business Bangalore-based Wipro won a high-profile client by signing up McLaren Technology Group, the company behind the successfull McLaren Formula 1 racing team.As part of the multi-year partnership, Wipro will deploy its HOLMES artificial intelligence platform to boost the producti...
Wipro opens center for embedded automotive solutions in Romania IT services provider Wipro Limited said it has established a center for automotive technology in Timisoara, Romania to focus on embedded solutions such as in-vehicle entertainment, cluster display, telematics, connected cars and driver assistance systems.The company plans to...
Infosys completes acquisition of London-based Brilliant Basics Infosys said it completed the acquisition of Brilliant Basics, a London-based product design and customer experience company.The acquisition was first announced a month ago."Through this acquisition, Infosys further expands its worldwide connected network of Digital Stud...
IndusInd Bank enters merger talks with SKS Microfinance Bharat Financial Inclusion, formerly known as SKS Microfinance, said it has entered into exclusive discussion with IndusInd Bank on a potential "strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure."SKS Microfinance is...
Infosys included in Dow Jones Sustainability Index Infosys said it has been inducted into the Dow Jones Sustainability Indices (DJSI) and is now part of two of the indices -- DJSI World and DJSI Emerging Markets.The indices measure the economic, environmental and social performance of companies and are based on the companie...
Finland’s Outokumpu upgrades IT contract with Wipro Information technology firm Wipro said it won a five-year IT applications management contract from Outokumpu, one of the world's biggest producers of stainless steel.Shares of the company were marginally higher at 299 rupees, up 0.6%.In 2014, the Finnish company had give...
I’m not here to stay – Nandan Nilekani on Infosys Former Infosys CEO Nandan Nilekani, who took over as Chairman of the company to resolve the tension between key shareholders and the management, said he did not join the IT company to run it.He said he was not in the company to step into the shoes of Vishal Sikka, the CEO who...
Narayana Murthy to clarify his stand on Infosys allegations, Vishal Sikka today Infosys founder and former chairman N R Narayana Murthy is all set to lay his cards on the table on his recent allegations about possible corruption at Infosys at a conference call with investors today at 6:30 PM.UPDATE: Murthy's call has been reportedly postponed to next wee...
FULL TEXT: Vishal Sikka’s resignation letter to Infosys board Vishal Sikka, the SAP-veteran who took over as the CEO of Infosys four years ago, has put in his papers after continuing differences of opinion with some of the key shareholders. He will, however, continue as the vice chairman of the company.He also wrote a long letter to the...
Wipro wins 5-year IT outsourcing deal from Telenor’s Bangladesh unit IT solutions provider Wipro said it won a five-year IT infrastructure and applications managed-services contract from Grameenphone, the Bangladesh telecom operator owned by Norway's Telenor. Under the agreement, Wipro will manage the entire IT infrastructure of the largest mo...
FITE says 11 cases against Tech Mahindra layoffs moved to courts The Maharashtra unit of Forum for IT Employees said 13 disputes over forced resignations and  layoffs at IT organizations have been moved to the labor courts after failed mediation attempts by state labor authorities.FITE meets Maharashtra CM11 of the 13 cases were filed...
Cognizant raises 2017 revenue, profit forecast Cognizant Technologies, one of India's largest employers, reported a 3.5% jump in its quarterly revenue in dollar terms, and raised the lower end of its full-year revenue forecast for 2017.It said it now expects revenue for the current year to be in the range of $14.70 billio...
IT companies using illegal tactics to force workers to resign: FITE The Forum for IT Employees, arguably the IT workers rights organization with the largest number of well-wishers and supporters, accused IT companies of using illegal and unethical means to force their workers to submit their resignations.In a meeting with Maharashtra Chief Mi...
Reliance Capital receives Rs 378 cr from Nippon Life for AMC stake Anil Ambani Group's Reliance Capital said it received Rs. 378 crore from Nippon Life Insurance, one of the largest life insurers in the world, after the foreign company increased its stake in Reliance Nippon Life Asset Management Limited to 49%.The original agreement to incre...
Wipro opens Artificial Intelligence research facility in Israel University IT and outsourcing services provider Wipro said it will use students at Israel's largest university to jointly conduct research into artificial intelligence.The company inked an agreement with Tel Aviv University, Israel's largest institution of higher learning which is home ...
Bajaj Auto, KTM decide to invest into Husqvarna motorcycle brand Bajaj Auto said it agreed with its Austrian associate KTM to expand the brand sales and shift some of the production of Husqvarna motorcycles to Bajaj's factory in Chakan, Maharashtra.The brand Husqvarna, founded in 1903 in Italy, used to be owned by BMW at one time. It was b...
News Corp buys Bangalore-based media software firm GyanMatrix Rupert Murdoch's News Corp announced yet another acquisition in India with the agreement to purchase Bangalore-based GyanMatrix Services Private Limited.P Hariharan, founder GyanMatrixThe company, which provides software solutions for media and publishing companies, will...
HPCL appoints bankers for Rs 6,000 cr FCCB issue Hindustan Petroleum Corp Ltd said it had appointed banking intermediaries for organizing investor meetings in the run up to raising Rs 6,000 cr ($930 mln) by selling foreign-currency denominated bonds.The bonds will be non-convertible, and will be issued if the meetings disco...
Who’s responsible for IT job losses? Ask this recruiter It's become something of a fashion to complain about job losses in India's big IT services firms.Companies like Infosys Ltd, Tata Consultancy Services, Wipro and Cognizant employ over a million people in the country, and have been letting go off tens of thousands this year as...
IT woes to bring down real estate rentals in Bangalore, IT hubs With IT sector witnessing subdued sentiment amidst pressure on hiring and annual pay rise for employees, the country's software and services hubs such as Bengaluru, Hyderabad, Chennai, Pune and Noida-Gurgaon in NCR are expected to see 10-20 per cent reduction in the housing rents...
Anil Ambani Group ties up with Thales for Rafale contracts Reliance Defence, the defence manufacturing arm of the Anil Ambani group, said it will form a joint venture in India with global defence manufacturer Thales to carry out some contracts related to the Rafale jet deal.The Indian company will hold 51% of the equity while the fo...
Axis Bank confirms exiting POS maker Mswipe Axis Bank confirmed it had sold its 8% share in new-generation card-swiping-machine company Mswipe Technologies.In a regulatory filing, the private sector bank said it sold its 8% stake for Rs 80.94 cr, or Rs 4,249 per share.Mswipe is one of the new generation, low-cost ...
Grasim-Adiya Birla Nuvo merger approved, ABFSL listing soon The Aditya Birla Group said it got the approval of the Company Law Tribunal for the merger of Aditya Birla Nuvo Ltd and Grasim industries Ltd and the listing of Aditya Birla Financial Services Ltd.The approval was obtained from the Ahmedabad bench."The approved Scheme ha...
Sun TV could benefit from RCom’s financial troubles Newer equipment from Reliance Digital TV come with Chois HD 4K brandingSun Direct, the DTH arm of Sun TV, could end up benefiting from the financial troubles faced by Anil Ambani Group's Reliance Communications.Speaking to media yesterday, Reliance Communications top hon...