KPIT Tech To Acquire 4 Companies From Technica Group For Rs.640 Crore

KPIT Tech To Acquire 4 Companies From Technica Group For Rs.640 Crore

September 22, 2022: KPIT Tech announced Wednesday that its board of directors has approved the acquisition of four of its companies from the Technica Group.

The fixed consideration is €80m, payable over 6 months. The transaction is expected to close by the end of October 2022, subject to customary closing conditions, and will ultimately result in Technica Group being wholly owned by KPIT Technologies.

“The Board has approved the acquisition of Technica Engineering GmbH in Germany, Technica Electronics Barcelona S.L. in Spain, and Technica Engineering Spain S.L. in Spain by our wholly owned subsidiaries KPIT Technologies GmbH and Technica Engineering Inc.

Through KPIT Technologies Inc., a wholly-owned subsidiary of the company with 100% ownership,” KPIT Tech said in its IPO filing. KPIT Technologies GmbH & KPIT Technologies Inc.

(the company’s wholly-owned DownDown subsidiary) will acquire 100% of the shares in advance. Target companies are automotive industry leaders in production-ready system prototyping (a combination of network system architecture, hardware prototyping, and integration), automotive Ethernet products, and verification tools.

Technica Germany currently has 275 employees in Germany, France, Sweden, and Asia. The headquarters are in Munich, Germany. Technica Barcelona, on the other hand, is based in Spain, currently has 50 employees, and is headquartered in Barcelona, Spain.

Technica Vigo is currently represented in Spain with 4 employees (headcount). The company is headquartered in Vigo, Spain.

Technica US, on the other hand, has a presence in the United States and currently has four employees (headcount).

Headquarters are located in Bloomfield Hills, Michigan, USA. Over the six months, he will be paid a fixed consideration of €80 million, according to the company, adding that he will be paid a variable consideration of up to €30 million based on the achievement of sales and profit milestones over the next 2.5 years.

“This acquisition will create cross-sectoral know-how and provide the industry with a one-stop-shop for the transition to SDV. This acquisition will increase combined earnings per share,” said the company added.

KPIT Tech’s shares rose more than 1 percent in Wednesday’s opening trading, taking him to £581 a share on BSE.

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