KPIT Technologies advanced 1.09% to Rs 580.30 after the company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle (SDV).
Technica Engineering is a company specializing in production-ready system prototyping (combination of network system architecture, hardware prototyping, integration), automotive ethernet products, and tools for validation. It has presence in Spain, Tunisia, and the USA.
"This will create across-the-stack expertise offering a one-stop shop for the industry to transform towards software-defined vehicle (SDV), KPIT Tech said in a statement.
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.
Kishor Patil, co-founder, CEO and MD of KPIT Technologies, said: "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."
Anup Sable, CTO at KPIT Technologies, said: "SDV demands a significant change in the electronics architecture moving from distributed low-compute devices to central-high-compute.
Rapid prototyping of high-compute hardware and vehicle architecture is critical to validate changes in architecture as the industry makes this transition. Together we will offer a one-stop shop for the industry to migrate rapidly towards SDV by speeding up prototyping and software access and reducing workflow complexities for clients."
KPIT Technologies is a technological company focused on automobile engineering and mobility solutions. The company offers technology solutions to automobile OEMs under different practices such as power trains (conventional and electrical), connectivity, autonomous (vision and control systems) and diagnostics. Each of its practice areas offer software IP, software integration, feature development, and verification and validation services.
The company's net profit increased by 8.3% to Rs 85.43 crore on a 5.2% rise in revenue from operations to Rs 685.72 in Q1 FY23 over Q4 FY22.
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