Cyient DLM Chairman Krishna Bodanapu with senior leadership team members of the two companies as Altek Electronics founder Stephen Altschuler and Cyient DLM CEO Anthony Montalbano sign documents.
| Photo Credit: Special arrangement
Integrated electronics manufacturing company Cyient DLM has acquired the U.S. electronic manufacturing services provider Altek Electronics for $29.2 million to expand presence in the North American market, strengthen capabilities across key sectors as well as add strategic clients and increase client proximity.
With a strong footprint in the medical and healthcare and industrial sectors, Altek Electronics strengthens Cyient DLM’s capability in these sectors and also brings onboard a diverse customer base. The acquisition adds a number of Fortune 500 clients to Cyient DLM’s portfolio and strategic engagements with multiple other key clients.
Additionally Altek Electronics, with its ITAR certification, positions Cyient DLM well to address the growing U.S. defence market. Cyient DLM said it will also significantly expand its manufacturing capacity adding additional 80,000 sqft of manufacturing area to cater to its clients globally.
“This acquisition is pivotal… expands our global footprint, brings us closer to our strategic customers and significantly strengthens our capabilities. Cyient DLM is not only broadening its reach into the medical and healthcare and industrial sectors but also bolstering its capabilities for the defence sector through ITAR compliance. Altek Electronics’ proven track record with key industry leading clients will accelerate Cyient DLM’s ability to deliver high-performance, reliable services across these sectors,” Executive Chairman Krishna Bodanapu said in a release on Friday (October 4, 2024.)
“The purchase price will be paid on an enterprise value basis; on a debt free, cash free basis and will be equal to an upfront payment of $23.4 million and an earn out of a maximum of $5.8 million based on performance,” Cyient DLM said, announcing signing of a membership interest purchase agreement with Altek Electronics Inc, Altek Holdings Inc and the shareholders.
Altek Electronics CEO David Altschuler said “joining forces with Cyient DLM opens new avenues for us to scale our operations and leverage their global resources and industry expertise.” Founded in 1972 and headquartered in Connecticut, the U.S. firm, which Cyient DLM is acquiring through a subsidiary, is into the entire product life cycle — from prototype to end-of-life services, specialising in PCBA assembly and upper-level assembly. For calendar 2023, it reported $37.2 million turnover.
Published – October 04, 2024 12:47 pm IST
