Aiming to supercharge its North American presence in the booming medical, industrial, and defence sectors, Cyient DLM Limited has made waves by acquiring US-based Altek Electronics for up to $29.2 million.
Cyient DLM Limited, an Indian integrated electronics manufacturing firm, acquired US-based Altek Electronics last week through its wholly-owned subsidiary, Cyient DLM Inc. The deal’s total value is estimated at up to US$29.2 million, including an initial payment of US$23.4 million and a performance-based earnout that could reach US$5.8 million.
With this, Cyient DLM aims to expand its footprint in North America, especially in the medical, industrial, and defence markets. The acquisition also adds 80,000 square feet (almost 7432.4 square metres) of manufacturing space. It brings International Traffic in Arms Regulations (ITAR) certification, enabling Cyient DLM to meet the demands of the growing US defence market.
Furthermore, the pact would facilitate Cyient DLM’s access to several ‘Fortune 500’ clients and other significant clients, given Altek’s robust industry presence.
Looking at this merger as a ‘pivotal milestone,’ Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient DLM, commented, ” This enhances Cyient’s capabilities and reinforces our commitment to excellence, enabling us to deliver greater value to our global customers.”
Anthony Montalbano, CEO of Cyient DLM, further emphasised that the deal would bolster its manufacturing capabilities and competitive edge in the American market.
According to David Altschuler, CEO of Altek Electronics, Cyient DLM will help scale its operations by utilising global resources and industry expertise. He reaffirmed their commitment to the values that have driven their success and looks forward to leveraging expanded capabilities better to serve their customers, suppliers, and stakeholders.
Altek Electronics, now owned by Cyient DLM, is an electronic manufacturing services (EMS) provider in Torrington, Connecticut. Founded in 1972, Altek specialises in printed circuit board assemblies (PCBA) and box builds tailored for the medical, industrial, and defence sectors. In the calendar year 2023, Altek reported revenues of $37.2 million.
