AXISCADES Technologies Ltd has approved the sale of its engineering services business catering to the heavy engineering, automotive, and energy industries to Akkodis entities in India, the UK, and the US for an aggregate consideration of $30.63 million.
The company informed exchanges that the board approved the transfer of the business conducted by AXISCADES Technologies Ltd and its subsidiaries — Epcogen Private Ltd, AXISCADES UK Ltd, and AXISCADES Inc. — to Akkodis India Private Ltd, Akkodis UK Ltd, and Akkodis Inc., respectively.
According to the filing, the transfer will be carried out on a slump-sale or going concern basis, depending on the jurisdiction and entity involved.
The transaction remains subject to completion of conditions precedent, including regulatory approvals and shareholder approvals wherever required. The company said the deal is expected to be completed within five months from the execution date, subject to fulfilment and waiver of conditions.
AXISCADES stated that the aggregate transaction value of $30.63 million will be paid in three parts. This includes an upfront payment of $17.42 million at closing, a deferred payment of $5.81 million payable after 12 months, and an earnout payment of $7.4 million linked to EBITDA performance thresholds by June 30, 2027.
For FY25, the transferring business contributed revenue or income of ₹249.3 crore, accounting for around 24% of the company’s turnover, while net worth contribution stood at ₹53 crore.
The buyers — Akkodis India, Akkodis UK, and Akkodis Inc. — are engaged in engineering, R&D, software development, and IT consulting services. AXISCADES clarified that none of the buyers belong to the promoter or promoter group and that the transaction is not a related-party transaction.
The company said the divestment aligns with its strategic objective of exiting engineering services operations in the heavy engineering, automotive, and energy sectors while realigning capital resources. AXISCADES added that the proceeds would be used towards technology-led acquisitions, manufacturing infrastructure, capacity expansion, balance sheet strengthening, and improving growth flexibility.
AXISCADES also stated that the move is expected to help the company become more focused, efficient, and strategically aligned while unlocking value for shareholders.
Disclaimer:
This article is for informational purposes only and should not be construed as investment advice.