Pratt&Whitney, which designs, manufactures and services aircraft engines and auxiliary power units, will buy 49 per cent stake in Infotech Aerospace Services, Inc, (IASI), which is a subsidiary of the Hyderabad-based Cyient.
Pratt&Whitney will now have complete ownership of IASI after the sale of the Cyient equity.
The two firms signed a definitive agreement under which Cyient would divest its 49 per cent equity ownership in IASI. Established in 2003, IASI is a 51:49 joint venture between Pratt & Whitney and Cyient.
“IASI provides aerospace defence design, development and related services, primarily to United Technologies and its business units. The closing of the transaction is subject to regulatory approvals and customary closing conditions,” Krishna Bodanapu, Chief Executive Officer and Managing Director, Cyient, has said.
“To enable greater focus on the strategy, we have been exiting non-core businesses. This is the second divestment post the sale of Infotech Enterprises IT Services (IEITS) that we did in 2015 as a part of our strategy to exit the IT services business,” he said.