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Cyient (532175) investor relations material
Cyient M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Acquisition of Kinetic Technologies accelerates the product strategy in power-efficient solutions for AI, data centers, automotive, and industrial automation.
Kinetic brings 250 ASSP products, 100+ patents, and deep customer relationships, doubling the addressable market to $8.5 billion.
Combines design leadership with a proven portfolio in power management and analog/mixed-signal ICs, enhancing application-specific solutions.
Leverages India's emerging semiconductor market and talent pool, aligning with long-term industry trends.
Positions the company as a leading fabless semiconductor house from India, focusing on proprietary IP and global scale.
Financial terms and conditions
The deal is valued at up to USD 93 million for a majority stake, at approximately 3x revenue, competitive with global benchmarks of 5x-6x.
Kinetic's estimated current year revenue is $40 million, with products mainly in power, industrial, data center, and consumer segments.
The company will acquire 70%-75% initially, with a path to full control in four years, subject to a liquidity event for founders.
Funding will be through internal accruals and potentially debt, optimizing shareholder value.
Transaction is subject to customary closing conditions, with completion expected in the coming months.
Synergies and expected cost savings
Integration of proprietary technologies and over 100 patents accelerates custom chip development and system-level solution delivery.
The acquisition is expected to be EBIT accretive from year one (FY 2027) and EPS accretive from year two.
Kinetic's integration will more than double semiconductor revenue and improve EBITDA margins above the services business.
Ecosystem partnerships with foundries and packaging providers are expected to drive cost efficiencies, especially in wafer pricing.
Shortens development cycles and scales ability to solve complex power and reliability challenges.
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