KPIT Technologies approves acquisition of 4 Caresoft entities for $191 million
Published on 06/05/2025 11:30 AM
KPIT Technologies approves acquisition of 4 Caresoft entities for $191 millionCaresoft Global will restructure its business into two segments — Benchmarking and Engineering Solutions. KPIT will acquire the carved-out engineering solutions business globally, which is primarily focused on the Off-highway, Truck and Bus segments, as well as Manufacturing Solutions.By Meghna Sen May 6, 2025, 11:30:36 AM IST (Published)2 Min ReadThe board of KPIT Technologies Ltd. on Tuesday, May 6, approved the 100% acquisition of four Caresoft entities — Caresoft Global Technologies, Caresoft Engineering Services, CAREGLOTECH de RL de CV, and OXI SRL.
The transaction will be completed over a period of three years, KPIT Technologies said in an exchange filing.
The total acquisition cost is estimated at $191 million, which includes a variable component of $25 million contingent on achieving specific revenue and business synergy targets. KPIT can pay the acquisition amount in one or more tranches over four years, using either cash or equity shares.
Caresoft Global will restructure its business into two segments — Benchmarking and Engineering Solutions. KPIT will acquire the carved-out engineering solutions business globally, which is primarily focused on the Off-highway, Truck and Bus segments, as well as Manufacturing Solutions.
The acquisition of the engineering solution business of Caresoft Entities would be operating margin accretive, KPIT Tech said.
KPIT will continue to partner with Caresoft in the benchmarking business.
The company expects business synergies in the following areas:
- Cost reduction and expansion of downstream engineering services in the Commercial Vehicle and Off-highway segments.
- Integration of Caresoft’s Engineering Services into KPIT’s Top 25 (T25) clients.
- Extension of KPIT’s Engineering Services to Caresoft’s global client base.
- Acceleration of KPIT’s entry into the China market.
- Entry into the software benchmarking space.
At KPIT, we are deepening relationships with trucks and off-highway makers and accelerating foray into China," said Kishor Patil, Cofounder, CEO and MD at KPIT Technologies.
Caresoft is a leader in automotive benchmarking and cost-reduction oriented engineering solutions business in predominantly in off-highway and commercial vehicle segment.
"We will jointly deliver more value to our automotive customers in terms of technology, cost, and speed to market," said Caresoft Global CEO Mathew Vachaparampil.
Shares of KPIT Technologies Ltd. are trading 0.51% higher on Tuesday at ₹1,265. The stock has declined 16% on a year-to-date basis.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsKPIT TechKPIT Technologies