KPIT Technologies will fully own Technica Group following the transaction, which is expected to close by the end of October 2022.
To buy to sell KPIT Technology to share
Shares of KPIT Technologies rose on Wednesday after the Pune-based technology company announced the acquisition of four companies from Germany’s Technica Group through a wholly-owned subsidiary in an all-cash deal. Pune-based KPIT Tech’s stock gained up to 2% to Rs 585.7 apiece on BSE after the news.
The deal, to acquire Technica Engineering, Technica Electronics Barcelona, Technica Engineering Spain and Technica Engineering, is valued at 80 million euros, to be paid over six months, according to a regulatory filing.
KPIT Tech will fully own Technica Group after the transaction, which is expected to close by the end of October 2022.
The four companies are at the forefront of automotive prototyping of production-ready systems (a combination of network system architecture, prototyping and hardware integration), automotive Ethernet products and engineering tools. validation, said KPIT Tech.
The deal will be accretive to EPS upon consolidation, the Pune-based IT company said.
“The mobility industry uses software to drive innovation and creates a post-sale vehicle business model focused on providing service to end consumers. We are constantly looking for opportunities to help accelerate our customers’ vision. Together with Technica Engineering, we will drive value and scale of operations across the stack,” said Kishor Patil, Co-Founder, CEO and Managing Director of KPIT Technologies.
“We have joint strategic customers who will benefit, and we also have access to leading disruptive mobility technology companies,” he said.
The transaction includes variable consideration of 30 million euros based on the achievement of revenue and profit milestones to be paid over the next 2.5 years, KPIT said.