IT solutions provider Cyient will acquire Portugal-based wireless engineering services firm Celfinet in an all-cash deal of €41 million or approximately Rs 340 crore, the Hyderabad-based company said on Monday.

With this acquisition, Cyient aims to strengthen its wireless engineering practice to support communications service providers (CSPs) and enterprises deploying their networks at scale. Cyient will pay 65% of the transaction amount up front and the remaining 35% as earnings over two years, subject to business performance.

“Celfinet’s deep expertise and long-standing customer relationships will further enhance our capabilities as we strengthen our wireless network technology to enable 5G deployments. In addition, Portugal has a highly skilled engineering workforce, making it part of our expanding global presence part of the business delivery footprint of the Centre for Business Strategy Innovation,” Cyient MD and CEO Krishna Bodanapu said in a statement.

The addition will further strengthen Cyient’s presence in Europe and help expand its presence in North America and Australia, the statement added. The deal is expected to close on June 20.

“Despite the many approaches taken over the years, it is critical to wait for the right people in the company to take over the business and unlock our potential. Cyient demonstrates not only shared values, but an ambitious and innovative vision for the future, Celfinet is A cornerstone investment that drives Cyient’s wireless engineering forward,” Celfinet said.