KPIT Technologies shares rose on Wednesday, September 21, after the Pune-based tech company announced the acquisition of four companies of Germany's Technica group through a wholly-owned subsidiary in an all-cash deal. The stock of Pune-based KPIT Tech gained by as much as 2 percent to Rs 585.7 apiece on BSE after the announcement.
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 the Technica group after the deal, which is expected to be closed by the end of October 2022.
The four companies have leadership in automotive in production-ready system prototyping (a combination of network system architecture, hardware prototyping and integration), automotive ethernet products and tools for validation, KPIT Tech said.
The deal will be EPS-accretive upon consolidation, the Pune-based IT company said.
"Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering services to end-consumers. We are constantly looking for possibilities to help accelerate our client's vision. With Technica Engineering, we will strengthen the value and scale of operations across the stack," said Kishor Patil, Co-Founder, CEO and MD of KPIT Technologies.
"We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies," he said.
The transaction includes a variable consideration of 30 million euros based on the achievement of revenue and profit milestones to be payable over the next 2.5 years, KPIT said.
KPIT shares have risen nearly 3 percent in the past one month, a period in which the
Nifty50 benchmark has remained flat.
First Published: Sept 21, 2022 10:09 AM IST
