Tata Technologies in talks to buy US firm Cambric for R177 crore

Written by feBureau | Mumbai | Updated: Apr 27 2013, 07:37am hrs
Engineering services and manufacturing enterprise IT provider Tata Technologies has agreed to acquire US-based engineering services company Cambric for $32.5 million or approximately R177 crore.

The deal is a combination of cash and earn out with the cash component of $30 million and an earn out of $2.5 million for one year.

Cambric gives our customers in the construction and heavy equipment as well as in the automotive sector access to specialists in this field as well as an access to Cambrics powertrain expertise, said Tata Technologies managing director and chief executive officer Patrick McGoldrick.

Tata Technologies has revenues over $350 million or R1,904 crore. Cambrics revenues will be accounted into the books of Tata Technologies from May 1 this year.

Cambric has a significant footprint in Eastern Europe and has three development centres in Romania catering to heavy machinery, agricultural, off-highway and automotive companies.

The company provides system level engineering and design capabilities in engine, powertrain, chassis/structures, body, electrical and hydraulic systems to its global customers. It is a privately held company with private equity investors holding majority stake in the company and had revenues of $25 million as on December 31, 2012, according to Tata Technologies.

We will now have similar (to Tata Technologies) engineering capability in the Asia Pacific region to supplement our significant Romanian and US presence, said Tim Hayes, CEO at Cambric. Cambric was advised by Rothschild and Holland & Hart and the transaction is subject to customary closing conditions.