Cyient shares gain after company announces $218 million acquisition of Tao Digital

Shares of Cyient Ltd. gained in early trade on Monday, June 1, after the company said it will entirely acquire Tao Digital Solutions Inc. for $218 million.

Its valuations are 9.5 times its estimates for the calendar year 2027's earnings before interest, tax, depreciation and amortisation (EBITDA), excluding management incentives and retention schemes.

Tao Digital's financials have improved over the last three years: from $19.7 million in CY23, to a 155% surge in CY24 to $50.3 million, which then increased by another 57% to $79.1 million in CY25.

As per analysts, this acquisition will add 12% to Cyient's digital, engineering and technology (DET) segment's revenue in financial year 2027.

For the financial year 2026, Cyient's DET revenue stood at $657.6 million, down 0.7% from the previous year.

The company in April said it is aspiring for mid-to-high single-digit growth in FY27.

Shares of Cyient are trading 1.4% higher on Monday at ₹921. The stock is up 6% over the last one month, but is still down 17% for the year.

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