KPIT Technologies Limited announced today it will acquire Caresoft’s global engineering solutions business for up to $191 million. The deal, approved by KPIT’s Board of Directors on May 6, 2025, involves the 100 per cent acquisition of Caresoft entities in the United States, United Kingdom, Mexico and Italy.

The shares of KPIT Technologies Limited were trading today at ₹1,265.80 up by ₹7.20 or 0.57 per cent on the NSE today at 10.59 am.

The acquisition targets Caresoft’s engineering solutions business focused on off-highway, truck and bus segments, and manufacturing solutions. The total consideration includes $25 million in variable payments tied to revenue and business synergy milestones, payable over four years either in cash or equity shares.

According to the disclosure filed with stock exchanges, the transaction will strengthen KPIT’s vehicle engineering capabilities and expand its commercial vehicle offerings. Key strategic benefits include accessing Caresoft’s relationships in the trucks and off-highway segments, accelerating KPIT’s entry into the Chinese market and enhancing cost-reduction solutions across vehicle segments.

KPIT expects the acquisition to be earnings accretive in the first year. The company plans to seek shareholder approval via postal ballot within 30 days to increase investment limits under Section 186 of the Companies Act to facilitate this and future acquisitions.

The Caresoft entities generated combined revenues of $51 million in 2024 from their engineering solutions business, which employs over 900 people globally. The transaction is scheduled to be completed over a three-year period.

Published on May 6, 2025