Engineering services firm Cyient, erstwhile Infotech EnterprisesBSE -1.33 %, has agreed to sell its entire 49% stake in Infotech Aerospace Services to Pratt & Whitney, part of United Technologies Corporation, for $10.9 million.
The divestment will enable it to focus on its ‘design-build-maintain’ strategy by exiting non-core minority investments, the Hyderabad headquartered company said in an exchange filing on Thursday. Infotech Aerospace provides defence design and development services, primarily to United Technologies and its business units. The transaction, which would be EPS neutral, is subject to regulatory approvals.
The divestment marks Cyient’s second such move after the sale of Infotech Enterprises IT Services in October 2015 as a part of its strategy to exit the information technology services business, chief executive Krishna Bodanapu said.
“This divestment is a step in the right direction and will aid us in becoming more focused while striding towards achieving our vision,” Bodanapu said, adding that the company “will continue to evaluate and rebalance our business portfolio”.
Source: Economic Times