IT Staffing Report: Feb. 2, 2017

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HCL Technologies buys Butler America Aerospace

HCL Technologies, one of India’s largest IT providers, acquired Butler America Aerospace for $85 million. The transaction closed Jan. 3.

Butler Aerospace has seven design centers and more than 900 engineers in the US. It provides engineering and design services in the areas of mechanical and structural design, electrical design, tool design and aftermarket engineering services to customers primarily in the aerospace and defense industries in the US. The acquisition bolsters HCL’s capabilities in this space and access to clients with large R&D spends.

Butler Aerospace, a wholly owned subsidiary of Butler America LLC, had revenue of $85.4 million for the year ended Dec 31, 2015.

HCL first announced the proposed acquisition in October, and noted the deal excluded the staffing business of Butler America LLC, a firm affiliated with D. Stephen Sorensen.

Sorensen acquired Butler International Inc. (OTCBB: BUTL.PK) in 2009, when it was in bankruptcy proceedings, for $26.2 million in cash plus assumption of certain liabilities. At the time, Sorensen was also chairman and CEO of Select Staffing (now EmployBridge).

Sorensen and the parent company of the Select Family of Companies last year settled lawsuits claiming wrongful termination and misappropriation of funds. Select had terminated Sorensen, saying it believed he orchestrated the improper diversion of $2.7 million. Sorensen sued, alleging that he was wrongfully terminated and that a press release by the company disparaged him; Select countersued.