Black Box weighs $70–90 million purchase of Aeries Technology

what happened

CNBC-TV18, citing sources, reports that Essar Group-backed Black Box has opened preliminary discussions to acquire Nasdaq-listed Aeries Technology. The potential transaction could value Aeries at $70–90 million. The negotiations remain at an early stage, while the structure, funding and timetable have yet to be settled. It is also unclear whether Black Box would seek the entire company or a controlling interest. CNBC-TV18 has contacted both companies for comment, and their responses are pending.

Aeries currently has a market capitalisation of about $36 million, so a transaction in the proposed range would represent a substantial premium for shareholders. The implied value would nevertheless be only a fraction of the company’s valuation when it went public. In March 2023, Aeries signed a $656 million business-combination agreement with SPAC Worldwide Webb Acquisition Corp. The transaction closed in November 2023, and the merged company began trading on Nasdaq under the symbol AERT.

Aeries, like many SPAC-listed businesses from that period, subsequently suffered a steep share-price decline. Earlier this year, it faced a possible Nasdaq delisting after its stock remained below $1 for an extended period. The company completed a 1-for-8 share consolidation in June and returned to compliance with Nasdaq listing requirements in July. Based in Mumbai, Aeries provides outsourcing and offshoring services, including support for companies establishing and operating global capability centres (GCCs). Its delivery teams are located in India and Mexico, and it often works with private-equity partners.

The company returned to profitability in FY26, posting net income of $3.5 million versus a $21.6 million loss in FY25. Annual revenue was $70 million, while adjusted EBITDA reached $8.3 million, equivalent to an 11.9% margin. Aeries has forecast FY27 revenue of $80–84 million, implying growth of roughly 14–20%. Black Box designs and manages IT infrastructure for large enterprises, including networks and data centres. Aeries would extend that offering into the operation of clients’ offshore businesses, an area typically associated with longer contracts and recurring revenue.

The market is expanding rapidly. Zinnov-Nasscom GCC Landscape 2026 counted 2,117 GCCs in India as of FY2026, employing about 2.36 million people and producing estimated revenue of $98.4 billion. Growth is also spreading beyond large enterprises, as more mid-market companies and unicorns establish GCCs in India. Those businesses overlap with the PE-backed mid-sized companies served by Aeries.

If completed, the transaction would be Black Box’s second overseas acquisition this year. In the June quarter, the company acquired Brazil’s 2S Inovações Tecnológicas. For Q1FY27, Black Box recorded revenue of ₹1,719 crore, 24% higher than a year earlier. Net profit increased 18% to ₹55.9 crore, while EBITDA advanced 38% to ₹160 crore.

Black Box has previously acquired a Nasdaq-listed company. In 2019, Essar’s AGC Networks bought US-based Black Box Corporation, taking it private and adding about $600 million to AGC’s revenue. AGC later adopted the name Black Box Ltd. A successful Aeries transaction would therefore mark the group’s second acquisition of a Nasdaq-listed business. CNBC-TV18 said the report would be updated after the companies provide comments.

why it matters

The talks put a possible premium valuation on Aeries while offering Black Box a route into GCC operations, recurring offshore-services revenue and another overseas expansion.

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