Biznextindia : Automotive software engineering firm KPIT Technologies on Wednesday announced the acquisition of cloud-based vehicle diagnostics specialist SOMIT solutions for a cash consideration of 7.68 million pound.
In the first tranche the KPIT will acquire 65% in May 2022. 100% acquisition expected be completed by the third quarter of FY2022-23. Performance based deferred consideration to be paid over a 3 –year period.
SOMIT enables after-sales operations of high tech luxury and new age OEMs through a cloud-based vehicle diagnostics platform & expert consulting services. Vehicle complexity is outgrowing existing servicing capabilities due to rapidly evolving software-centric architectures, high-tech automotive engineering, and an acute shortage of trained and certified service technicians across the globe. SOMIT’s cloud-based platform features an intelligent and intuitive diagnostics solution that will enhance a service technician’s user experience and improve service quality by increasing the ratio of first-time-right repairs.
” We are very excited to welcome SOMIT Solutions to the KPIT family. SOMIT has created a niche for themselves in the challenger EV OEM segment. Their cloud-based platform complements KPITs existing after-sales platform to offer a more integrated solution for the benefit of our T25 clients. KPITs strategic T25 clients will benefit immensely. Generating revenue through the lifecycle of a vehicle is a key priority for OEMs. SOMIT and KPIT will better enable their OEM clients in realizing this strategic objective. This will be one of the fastest-growing market opportunities in the next 3-5 years” Kishor Patil, Co-founder, CEO, and MD, KPIT Technologies, said.