KPIT Tech acquires 4 Technica Group companies for ₹640 crore

KPIT Tech said that its board had approved the purchase of four Technica Group companies for a set consideration of Euro 80 million (about 640 crores) to be paid over a six-month period. After the usual closing conditions have been met, the transaction is anticipated to occur by the end of October 2022, at which point KPIT Technologies will hold 100% of Technica Group.

The Company's fully owned step-down subsidiaries KPIT Technologies GmbH and KPIT Technologies Inc. will purchase the whole share capital upfront.

The target entities are industry leaders in automotive ethernet products, validation tools, and production-ready system prototypes (a combination of network system architecture, hardware prototyping, and integration).

Technica Germany has a presence in Germany, France, Sweden, and Asia, having 275 employees as of now. Its main office is in Munich, Germany. While this is going on, Technica Barcelona, which has its headquarters in Barcelona, Spain, has a presence in Spain and now employs 50 people.

Technica Vigo has four employees at the moment and is present in Spain (No. of employees). Its main office is in Vigo, Spain. In contrast, Technica US is present in the country and now employs 4. (No. of employees). Its main office is in Bloomfield Hills, Michigan, in the USA.

The corporation stated that the fixed consideration of 80 million euros would be paid over six months, and the maximum variable consideration of 30 million euros, dependent on the attainment of revenue and profit milestones, would be paid over the following 2.5 years.