KPIT Technologies, the engineering research company, has acquired a 100 percent stake in Caresoft Global’s 4 entities. The company has acquired Caresoft Global Technologies, Caresoft Engineering Services, Careglotech, and OXI SRL in a deal amounting to Rs $191 million.
In an exchange filing, the company stated that the transition will be completed in a period of three years, and the purchase amount also includes a $25 million variable payment to be paid in a period of 4 years. The variable payment depends upon revenue achievement and other business synergy milestones.
Caresoft’s business offerings-
Caresoft provides an engineering solution for the automotive OEMs, commercial vehicle manufacturers, as well as product development. The company specializes in streamlining production solutions for passenger cars, trucks, buses, and off-highway machines like harvesters.
As per the exchange filing of KPIT, the four entities of Caresoft had a combined revenue of $51 million in 2024. Earlier, the four entities had a combined revenue of $50 million and $44.3 million in 2023 and 2022, respectively.
KPIT Technologies’ plan for the acquired companies
With the acquisition of Caresoft’s engineering solutions, KPIT Technologies is looking to strengthen its vehicle engineering and design capabilities. The acquisition will integrate the company’s downstream engineering and benchmark services as well.
Secondly, the acquisition will speed up KPIT Technologies’ global expansion. Caresoft has over 150 global auto OEM clients. The acquisition will open the doors of the Chinese market for KPIT Technologies, where Caresoft has a large clientele base. Also, Caresoft’s cost engineering will help in cost reduction solutions for its core business as well.
KPIT Technologies’ share movement
On Tuesday, KPIT Technologies’ share opened at Rs 1265 and went down to Rs 1241 by 10 AM. The stock recovered to Rs 1269 by 11 AM. However, by the closing of the market, the kept going down till it closed at Rs 1237.50.