Engineering services and manufacturing enterprise IT services firm Tata Technologies on Friday said it will acquire US-based Cambric for $32.5 million (about Rs 180 crore), a move that will strengthen its presence in global construction and heavy equipment sector.
"The partnership will strengthen Tata Technologies' global footprint and domain capabilities to provide high-end engineering services to clients, especially in Europe. About $30 million is being paid in cash, while the remaining is earn-out which will be completed in a year," Tata Technologies MD and Chief Executive Patrick McGoldrick said.
The buyout will also provide Tata Technologies access to high-end systems engineering, design and powertrain engineering capability, he added.
The cash and earn-out deal is expected to close in the next few days, subject to customary closing conditions.
Cambric will operate as a subsidiary of Tata Technologies and the revenues are expected to start accruing to the latter's books from May onwards.
It has three development centres in Romania and its customers include heavy machinery, agricultural, off-highway and automotive companies.
Privately-held Cambric had revenues of $25 million as of December 31, 2012 and has 450 engineers in Romania and the US, who will now become a part of the Tata group company.
"Additionally, Cambric's customers will have access to Tata Technologies' footprint in Asia Pacific and complementary capabilities including embedded systems, enterprise IT and extensive automotive domain experience," McGoldrick said.
Founded in 1989, Tata Technologies has revenues over $250 million and over 6,000 engineers working at the firm.
Cambric was advised by Rothschild and Holland & Hart.
"We see this combination of our two companies as a means to match our clients' global operations with our own engineering footprint. We will now have similar engineering capability in the Asia Pacific region to supplement our significant Romanian and US presence," Cambric Senior Vice President and COO Florin Muntean said.