KPIT Acquires Caresoft Engineering Solutions for $191 Million

New Delhi, May 6 (PTI) KPIT Technologies on Tuesday announced the acquisition of Caresoft Global's engineering solutions business for a total consideration of up to USD 191 million.

The buyout would strengthen KPIT's commercial vehicle vertical by combining Caresoft's deep relationships and domain knowledge in trucks and off-highway segments, according to a release.

It is also expected to accelerate KPIT's foray into China.

In a BSE filing, KPIT informed that the consideration for the acquisition will be a maximum of USD 191 million, including USD 25 million variable consideration swap or any other form, and based on the achievement of revenue and other business synergy details of the same milestones.

This total consideration can be paid in one or more tranches over a period of 4 years with cash consideration and/or equity shares at the option of KPIT for an amount not more than USD 25 million, subject to shareholders' approval, according to a BSE filing.

Caresoft Global, an automotive benchmarking and cost reduction-driven engineering solutions company, will restructure its business into three business units. These include Benchmarking, Technology Optimisation and Cost Reduction Engineering; Engineering Talent Solutions; and Engineering Solutions.

KPIT will acquire the carved-out Caresoft Engineering solutions business globally which is primarily focused on off-highway, truck and bus segments and manufacturing solutions.

Aligned with the needs of Global OEMs and KPIT's goals, this partnership will create multi-dimensional synergies by deepening focus on trucks and off-highway segments, accelerate KPIT's foray into China, ramp up value creation through full vehicle cost reduction solutions for passenger cars, trucks, and off-highway segments; and provide manufacturing engineering solutions for the mobility segment.

"KPIT acquires Caresoft Global Engineering Solutions Business to deliver enhanced cost optimisation and innovative engineering solutions to trucks, off-highway, and mobility players," the release said.

In line with KPIT's strategic focus on the commercial vehicle segment, the partnership will acquire Caresoft's deep relationships and domain knowledge in the Trucks and Off-highway segments.

"Caresoft's deep understanding and relationships with Chinese OEMs, NEVs, and suppliers, as well as its longstanding presence in China, will accelerate KPIT's foray into the country. KPIT will also implement best practices and lessons learned for Global OEMs," the release said.

KPIT will also tap into the rich insights generated by Caresoft's technology optimisation and cost reduction programs, expand into new areas such as software benchmarking, create unique market differentiators, and jointly explore downstream implementation opportunities.

It will also acquire new capabilities in areas such as manufacturing and industrial engineering, plant layout planning, and assembly line optimisation for the mobility ecosystem. It will help OEMs make smarter decisions on product design and production from the ground up, and help OEMs implement the best design in their factories, the release added.