Page 46 - IACC Newsletter March 2013 Issue no. 9

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India’s Investments in U.S
Tata Tech buys US-based Cambric for $32.5 million
In a bid to increase revenues from Europe, engineering services company Tata Technologies has acquired Cambric
Corporation for $32.5 million (roughly Rs 175 crore).
The deal gives the company, which is a subsidiary of Tata Motors, access to three development centres in Romania, Tata
Tech’s Managing Director and Chief Executive Officer Patrick McGoldrick said at a news conference today.
Of the $32.5-million deal, $30 million will be the cash component and the remaining will be milestone-linked payouts,
company officials indicated.
In addition, sources said, the company is to benefit from Cambric’s existing clientele in the construction and heavy
equipment space, including marquee names such as Caterpillar and CNH. Cambric’s existing customers will also have the
option of being serviced by the Tata group company centers in India.
The US-headquartered Cambric is a privately-held company and reported revenues of $25 million as on December 31,
2012. It provides system engineering and design capabilities in engine, power train, chassis and structures, electrical and
hydraulic systems, to its customers. The company employs 450 engineers in the US and Romania.
Post the completion of the transaction, Cambric will become a unit of the Indian company, McGoldrick said. The
transaction is expected to be concluded by May, he said, adding that he did not foresee any problems in integrating the
two companies.
The $250-million Tata Tech renders services to clients across 25 countries. In the current fiscal, the company will spend
$14 million in capital expenditure, President Global Services and Chief Operating Officer Samir Yajnik had said in an
earlier interaction.
IPO Plans
In 2011, Tata Tech completed a round of equity funding for Rs 141.06 crore from two Tata Capital-managed companies.
Though analysts see this a pre-cursor to an initial public officering, McGoldrick is elusive.
“Listing is a decision for the board to take. All throughout, we have been financing growth through cash generation. If
the board and our shareholders decide we should be listed, my job is to make that happen,” said McGoldrick.