KPIT Technologies Limited, a leading player in the automotive and mobility sectors, has completed the acquisition of the Technica Group and KPIT Engineering SUARL (Tunisia) for a total consideration of €80 million.
The acquisition, which includes the purchase of Technica Engineering GmbH (Germany), Technica Electronics Barcelona S.L. (Spain), and Technica Engineering Inc. (USA), was initially announced in September 2022. KPIT’s wholly-owned subsidiaries, KPIT Technologies GmbH and KPIT Technologies Inc. facilitated the deal. The €80 million payment includes an upfront fixed consideration of €60 million, with a balance €20 million paid as part of the final settlement.
In addition to the Technica Group, KPIT Technologies has also acquired KPIT Engineering SUARL, the nearshore development center located in Sfax, Tunisia, which provides critical development services to Technica GmbH, one of its key customers. The acquisition of KPIT Engineering Tunisia adds significant value to KPIT’s existing capabilities, especially in its role as a key development hub for the Technica Group.
The acquisition brings enhanced expertise to KPIT Technologies, particularly in automotive system prototyping, network system architecture, and hardware integration. Technica Group, a leader in these fields, specializes in cutting-edge technologies for the automotive industry, making the deal a significant step for KPIT in expanding its offerings in the transformation toward Software-Defined Vehicles (SDV).
“The integration of Technica Group into KPIT Technologies adds across-the-stack expertise and positions us as a one-stop shop for automotive industry transformation,” said Nida Deshpande, Company Secretary & Compliance Officer at KPIT Technologies. “The deal is also EPS accretive, reflecting the synergies between our businesses and the growing demand for advanced automotive systems and validation tools.”
KPIT’s decision to acquire Technica Group is also aligned with its strategic focus on strengthening its presence in the rapidly evolving SDV space. The acquisition is part of a broader plan to expand KPIT’s global reach and product capabilities, particularly in providing production-ready solutions to the automotive industry.
The total fixed consideration for the acquisition was €80 million, with €9.5 million allocated for performance-based earnouts and €5 million for the acquisition of KPIT Engineering Tunisia. The earnout payments are contingent upon the achievement of specific performance conditions, as outlined in the Share Purchase Agreement (SPA) signed on September 21, 2022.
The shares of KPIT Engineering Tunisia have now been successfully transferred to KPIT Technologies, with the transaction recorded in the Tunisian National Company Register as of December 4, 2024.
“This acquisition is a strategic move to enhance KPIT’s capabilities, and we are excited about the synergies it creates for our business,” said Vinayak Godse, CEO of the Data Security Council of India (DSCI). “KPIT’s expanded presence in the automotive sector reinforces its role as a key player in driving the digital transformation of the industry.”
