Indian IT service provider HCL Technologies has signed an agreement to acquire Butler America Aerospace for a total consideration of $85m in cash.

The proposed deal does not include the staffing business of Butler America.

Expected to be completed by 31 December, the transaction is subject to regulatory approvals, including the Committee on Foreign Investment in the US (CFIUS) approval and other customary closing conditions.

With the deal, HCL intends to boost its capabilities in aerospace and defence sector, as well as have access to clients with large research and development (R&D) spends.

"With the deal, HCL intends to boost its capabilities in aerospace and defence sector."

Mainly serves the aerospace and defence industries in the US, Butler America Aerospace provides engineering, design services and aftermarket engineering services.

Currently employing more than 900 engineers, the company operates seven design centres in the US, and works with original equipment manufacturers (OEM) and their suppliers.

HCL currently has operations in 32 countries worldwide and has consolidated revenues of $6.6bn for 12 months ended 30 September.

The company serves various sectors, including financial services, manufacturing, telecommunications, media, publishing entertainment, energy utilities, travel, transportation logistics, government and other sectors.

In April, HCL entered an agreement to purchase Geometric, which provides product lifecycle management (PLM) consulting, mechanical engineering and manufacturing engineering services.

The deal excludes Geometric’s 58% stake in the 3DPLM Software Solutions joint venture.