KPIT to acquire 4 Technica Group companies for 80 million Euros

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Biznextindia : Automotive and mobility software firm KPIT Technologies has announced the acquisition of 4 subsidiaries of Technica Engineering, a German based company specializing in production-ready system prototyping automotive ethernet products, and tools for validation for a cash consideration of Euro 80 million.

“The Board of Directors of the Company, at its meeting has approved the acquisition of Technica Engineering Gmbh, Germany, Technica Electronics Barcelona S.L., Spain and Technica Engineering Spain S.L., Spain through KPIT Technologies GmbH, a wholly owned step down subsidiary of the Company of 100% shareholding and Technica Engineering Inc, USA through KPIT Technologies Inc. a wholly owned step down subsidiary of the Company of 100% shareholding” the company said in a regulatory filing.

The Euro 80 million fixed consideration will be paid over 6 months. Maximum Euro 30 million variable consideration based on achievement of revenue and profit milestones to be payable over the next 2.5 years.

This acquisition will create across-the-stack expertise offering a one-stop shop for the industry to transform towards SDV. Technica Engineering is headquartered in Munich and has a presence in Spain, Tunisia, and the USA, with a team of 600+ engineers.

The deal is expected to be closed by the end of October 2022, post fulfillment of customary closing conditions, and at the end of it, Technica Engineering will be fully owned by KPIT Technologies. The deal will be EPS accretive upon consolidation.

“Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering services to end consumers. We are constantly looking for possibilities to help accelerate our client’s vision. With Technica Engineering, we will strengthen value and scale of operations across the stack. We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies.” said Mr. Kishor Patil, Co-founder, CEO and MD of KPIT Technologies.

“For the last 14 years, Technica has built a team passionate about cutting-edge tech in network architecture and system prototyping. A partner with a vision and value match was crucial to scale and create leadership in this space. We are delighted to find that in KPIT. We are confident that together we will play a key role in shaping the future of the mobility industry.” said Mr. Joseba Rodriguez Martinez, CEO of Technica Engineering.

 

 

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