KPIT Technologies on Wednesday announced the acquisition of German company Technica Engineering for 80 million euros (Rs 640 crore) in an all-cash deal, which is expected to be closed by the end of October 2022. Technica Engineering will be fully owned by KPIT Technologies through its subsidiaries. The deal will be EPS accretive upon consolidation, KPIT said.
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KPIT will be paying 80 million euros as a fixed portion of the deal and 30 million euros will be a variable to be paid on achieving revenue and profit milestones over the next 2-5 years. Technica reported consolidated revenues of 43 million euros and an Ebitda range of 20% in FY2021.
Technica is headquartered in Munich with a presence in Spain, Tunisia and the US with a team of 600 engineers, and specialises in production-ready system prototyping, automotive ethernet products and validation tools.
“We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies,” Kishor Patil, co-founder, CEO and MD of KPIT Technologies, said.
KPIT is and an independent software development and integration company focused on the automotive and mobility ecosystem for making software-defined vehicles (SDV). With this acquisition, KPIT would be able to integrate with Technica expertise is in automotive networks and be a one-stop shop for the industry to transform towards software-driven vehicles. “”We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies,” Kishor Patil, co-founder, CEO and MD of KPIT Technologies, said.
“Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering service to end customers. With Technica Engineering, we will strengthen the value and scale of operations across the stack, Patil, said. Anup Sable, CTO at KPIT Technologies, said the SDV demand a significant change in the electronics architecture moving from distributed-low-compute devices to central-high-compute. “Rapid prototyping of high-compute hardware and vehicle architecture is critical to validate changes in architecture as the industry makes this transition. Together, we will offer a one-stop shop for the industry to migrate rapidly towards SDV, by speeding up prototyping and software access,” Sable said.