Axiscades Technologies’ board of directors has approved the acquisition of a 90% stake in Cloud Wave Technologies Private at an enterprise value of Rs 260 crore. The transaction is expected to be completed by September 30. 

Axiscades will acquire the majority stake in Bengaluru-based Cloud Wave for a cash consideration of Rs 234 crore, and the remaining 10% shareholding may be acquired subsequently, subject to account finalization and account adjustment as set out in the definitive agreements. 

Axiscade-Cloud Wave partnership: Purpose of acquisition

According to its regulatory filing, Axiscades aims to further expand its aerospace manufacturing platform and immediately add to its operational precision-manufacturing capabilities alongside its established, product-based aerospace, defence and electronic businesses, for which it is acquiring a majority stake in Cloud Wave. 

Additionally, the acquisition forms a border part of Axicades’ Power 930 growth plan, which aims at continued expansion into aerospace manufacturing.  The company is also developing a new centre for advanced manufacturing at Devanhalli Aerospace Park in Bengaluru, for which the acquisition of Cloud Wave will help in capacity expansion. 

“AXISCADES will continue to evaluate selective inorganic opportunities that deepen manufacturing capabilities, expand technology access, and strengthen proximity to global customers in the US & European Union (EU),” the company said in a statement. 

ALSO READ

Axiscade-Cloud Wave partnership: Management commentary

Speaking on the development, KP Mohanakrishnan, Deputy CEO & President – Aerospace, AXISCADES Technologies, said, “This platform will continue to expand & grow its existing customers and in parallel meet our own internal metallic manufacturing needs across Defence and Electronics, and positions us to bid for domestic programmes with ADA, HAL, DRDO and others.” 

“Joining the AXISCADES Group marks an important milestone in Cloud Wave’s growth journey. It provides us with greater scale, access to a broader customer base, and the long-term capital required to accelerate our ambitions,” said Satishkumar P, Founder & CEO of Cloud Wave Technologies.

Axiscade share price

The company’s share price was up over 2% in Monday’s intraday trade. Over the past one month, its stock has delivered a return of around 4%, while over the past six months, its share price has advanced by 19%.