Cyient shares rise as arm acquires over 65% stake in US semiconductor firm Kinetic

Cyient Semiconductor, a wholly owned subsidiary of Cyient Ltd., has announced the acquisition of a majority stake of over 65% in US-based semiconductor company Kinetic Technologies for $93 million.

Kinetic Technologies specialises in analog and mixed signal integrated circuit design. According to company disclosures, Kinetic reported revenue of $63 million in CY23, $37 million in CY24 and is expected to post about $41 million in CY25.

Analysts said the acquisition is expected to add around 5% to Cyient's consolidated revenue. Cyient has scheduled a conference call on December 18 at 8:30 am to discuss the transaction in detail.

Global brokerage firm JPMorgan has an 'Overweight' rating on Cyient with a price target of ₹1,500 per share.

The brokerage said that Kinetic's expected CY25 revenue of $41 million compares with about $25 million of annualised revenue for Cyient's organic semiconductor business in FY26.

Post acquisition, Kinetic is expected to contribute around 6% of Cyient's FY26 revenues from its combined DET and semiconductor businesses.

JPMorgan said the deal should help Cyient scale up its semiconductor business at a faster pace, an area where the company has stepped up focus after carving out the segment earlier this year under a separate management team.

However, it pointed out that the acquisition has been struck at an enterprise value to revenue multiple of about 3.5x, which is higher than the average multiple of around 1.9x paid for Cyient's previous three acquisitions.

Shares of Cyient Ltd. closed 1.20% lower on Wednesday at ₹1,136. The stock is down 37% so far in 2025.