KPIT Cummins buys 2 foreign firms

Acquires 90% stake in Solcentral of US for $2 mn and 70% in Pivolis of France for euro 1.75 mn

The Rs 252 crore KPIT Cummins has acquired two overseas companies "" one in the US and the other in France.

Ravi Pandit, chairman and chief executive officer, said, "We have bought 90 per cent stake in Washington DC-based Solcentral for $2 million."

Solcentral provides business intelligence solutions and KPIT wants to develop this line of business as a major activity in the future, he added. He further said the balance 10 per cent stake would be acquired over two years by paying up to $2.8 million based on various performance criteria.

For the 90 per cent stake in Solcentral, KPIT will be paying 90 per cent amount in cash and 10 per cent in stock and for the remaining 10 per cent, it will pay 75 per cent in cash and rest in stock, Pandit said. Soltcentral's total turnover was $3.5 million, with profit at $7,50,000 for the year ended on December 31, 2004.

About the French acquisition, Pundit said, "We have decided to acquire Paris-based Pivolis, which provides consultancy services in banking, financial services and insurance and use it as a launching pad for operations in France.

He further said KPIT has bought 70 per cent stake in Pivolis for ¤1.75 million. Nearly 50 per cent of the amount would be paid in cash and rest in stock.

Pandit also said that the remaining 30 per cent would be acquired for ¤1.5 million over three years, subject to performance. Payment for the 30 per cent stake would also be made in a combination of 50 per cent cash and 50 per cent stock.

Pivolis has a turnover of around ¤2.5 million in the last financial year.

DEAL STREET

Soltcentral provides business intelligence solutions. The company's total turnover was $3.5 million, with profit at $7,50,000 in the year ended December 31, 2004

Pivolis' has a turnover of around euro 2.5 million in the last financial year