Athira Sethu
Kochi, 7 October 2024
Cyient DLM has said that it would acquire Altek Electronics, one of the leading electronic manufacturing services providers in the US for a cash consideration of $29.2 million. The payout will include an upfront payment of $23.4 million and maximum earnout of $5.8 million based on performance.
The strategic acquisition is an important step for Cyient DLM’s growth plan, strengthening its presence in the North American market and capabilities across key sectors.
Altek Electronics has a sound footprint in the medical and industrial sectors, perfectly aligning with the focus areas of Cyient DLM. The acquisition brings in a diverse customer base consisting of several Fortune 500 clients and opens up strategic partnership opportunities that will benefit both companies. Due to Altek’s ITAR certification, Cyient DLM is now well-positioned for tapping into the growing U.S. defense market.
This acquisition will significantly enhance Cyient DLM’s manufacturing capacity through an additional 80,000 square feet of facilities that it will own. This growth supports the company’s ability to better serve clients globally. The deal is well in line with Cyient DLM’s strategic roadmap of being able to broaden the geography where it could engage with the client and improve proximity to customers.
Krishna Bodanapu, Executive Chairman of Cyient DLM, said this acquisition will expand its market reach. This is making its capabilities stronger in regulated industries, he added.
Commenting on the deal, David Altschuler, CEO of Altek Electronics said, “I welcome this new opportunity to join the Cyient DLM team to scale up its operations without diluting core values and build upon its success. The acquisition clearly underlines the intent of Cyient DLM in positioning itself as a leader in the EMS sector, particularly in safety-critical industries.”
