Bangalore, India, August 18 2015: The Board of Directors of AXISCADES Engineering Technologies Limited (ACETL) has approved the acquisition of AXISCADES Aerospace and Technologies Private Limited (ACATL), an aerospace, defence and homeland security technologies company, in an all-stock deal. Shareholders of IAT (holding company of ACATL) will receive 10 (ten) shares in ACETL for every 45 (forty five) shares held by them. The transaction is proposed to be completed via a Scheme of Amalgamation and is subject to relevant regulatory approvals.
AXISCADES Aerospace & Technologies Private Limited (ACATL) is a niche player providing strategic technologies to aerospace, defence & homeland security sectors. ACATL has built capabilities in system integration, design and development of solutions and platforms in the areas of automatic test equipment & test solutions, software and simulations, avionics, electronic warfare systems and paramilitary training solutions. ACATL has proven track record, successfully executing offset programs for its marquee clientele comprising of global OEM’s and the Ministry of Defence, India. The company is uniquely positioned to capitalize on the enormous India sourcing opportunities within the global supply chain as well as the Indian defence offset program and the “Make in India” initiative. The combined entity (AXISCADES) will be an integrated technology solutions partner, addressing business needs across domains.
The joint financial strength, complementary capabilities of the two organizations and their synergistic client base, will position the company to target a much wider set of opportunities, and compete for larger, integrated projects.The transaction will not only create long term, sustainable value enhancement for all shareholders, but will also be value accretive to shareholders from day one. The combined business has FY15 consolidated pro-forma revenues of Rs. 530 crore, and employs in excess of 1,700 people across 10 different countries. Commenting on the occasion, Dr. Vivek Mansingh, Chairman of the Board, ACETL said, “It is a game-changing transaction for the Company from every perspective and vaults ACETL into the big league. ACATL’s strongtechnical and domain expertise combined with proven global delivery capability has the potential to transform ACETL from a niche engineering services company to an integrated technology solutions partner in the aerospace, defence & homeland security sector.
Pursuant to the transaction, we are also pleased to announce the appointment of Mr. Sudhakar Gande as Executive Vice-Chairman of the Board, with immediate effect. Mr. Gande brings more than 25 years of experience in venture development, investment banking and general management across aerospace, technology and banking sectors. His presence on the Board of the combined entity will provide a great fillip to the organization, driving M&A strategy and implementation.
S. Ravi Narayan, Chairman of the Board, ACATL, said, “We are excited with this development and believe that the transaction is highly synergistic. ACATL with its design, development and system integration capability, presence in the promising defence sector with high entry barriers and high pedigree clientele, brings an added dimension. This consolidation leads to a more vertically integrated company. My team looks forward to working with our new colleagues and jointly realizing our shared growth ambitions.”
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