Altran, a global leader in Engineering
and R&D services has entered today through its subsidiary Altran US, into a
definitive agreement to acquire Aricent, a global leader in design and engineering
services, from a group of investors led by KKR, for a total enterprise value of
USD 2.0 Billion in an all cash transaction.
Aricent is a global digital leader
in integrated design and engineering services, primarily
serving clients of the Communications and Technology, Semiconductor and
Software industries. Headquartered in Santa Clara (California), Aricent brings
design and engineering capabilities to help its clients get to
market faster, transform legacy products to digital, and create new revenue
opportunities.
Aricent also has solid
experience in shaping large engineering outsourcing deals and
key capabilities in key emerging technologies including Artificial
Intelligence, Cognitive Systems, and Internet of Things and software
frameworks. Over the LTM June 2017, Aricent generated revenues
of $687m with ca. 10,500 employees and operated through 24 engineering centers
and design studios, serving ca.360 clients globally.
This acquisition is expected to
generate €150 million of additional revenues translating into €25 million EBITDA run-rate
synergies and €25 million of delivery and cost synergies. These synergies are
expected to be delivered progressively within 3 years, with implementation
costs representing close to 1 year of cost synergies, to be spread over
2018-2019. The deal is expected to be EPS accretive from year one, and double
digit accretive when taking into account run-rate synergies.
