RTTNews | Sep 22, 2021 10:09AM EDT

10:09 Wednesday, September 22, 2021 (RTTNews.com) - Shares of hardware platform and supply chain solutions provider Celestica Inc. (CLS) are rising more than 16% Wednesday morning.

Tuesday the company announced its decision to acquire PCI Limited, a fully integrated design, engineering and manufacturing solutions provider, for $306 million, to be paid in cash, from Platinum Equity.

PCI is expected to bring in about $325 million of annual revenue in 2021 with low double-digit adjusted EBITDA margins.

Further, the company has increased its 2022 revenue outlook to $6.3 billion or more from previous target of $6 billion or more. Analysts polled by Thomson Reuters expect the company to report revenue of $5.62 billion for the period.

"The addition of PCI is expected to further strengthen Celestica's approach towards engineering-focused engagements, including full product development in the areas of telematics, human machine interface (HMI), IoT and embedded systems. The transaction is expected to add over 20 complementary, blue-chip customers to Celestica's customer base, and lead to multiple synergies, including commercial cross-selling opportunities between both companies, the acceleration of engineering product offerings, and supply chain savings," Celestica said.

CLS, currently at $9.37, has been trading in the range of $5.77- $9.57 in the last one year.

Read the original article on RTTNews ( https://www.rttnews.com/3227498/celestica-rallies-on-news-of-acquisition-of-pci-ups-revenue-view-above-estimates.aspx)

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