HCL Technologies Ltd.

HCL Technologies (HCL) has entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers. Butler Aerospace is a wholly owned subsidiary of Butler America LLC.

The proposed acquisition will exclude the staffing business of Butler America Inc. The consideration for the proposed transaction is $85.0 million to be paid in cash. Butler Aerospace had revenues of $85.4 million for the year ending December 31, 2015 at EBIT of 12.2%. The transaction when consummated is likely to be EPS accretive.

Butler Aerospace serves customers primarily in the Aerospace and Defense industries in the US, to whom it provides Engineering & Design services in the areas of Mechanical and Structural Design, Electrical Design, Tool design and aftermarket engineering services.

With over 900 highly skilled engineers and 7 design centers in the US, Butler Aerospace has a marquee list of clients in the Aerospace & Defense industries and works with OEMs and their Suppliers. The acquisition will bolster HCL’s capabilities in this space and access to clients with large R&D spends.