ChrysCapital-backed and Pune-based tech company KPIT Cummins Infosystems Ltd has got its board’s approval to acquire 50 per cent stake in Mumbai-based Systime Global Solutions Pvt Ltd for a total consideration of $22.77 million.
The company will acquire the remaining 50 per cent of the equity and preference shares over a period of three years, at a price which will include a certain fixed and variable consideration.
The KPIT scrip was trading at Rs 168.70, down by 0.79 per cent, at BSE on Thursday at 1 pm.
KPIT Cummins provides IT and IT-enabled services including software development, maintenance, support and risk management. Its custom solutions span such areas as supply chain management, PC tools development, embedded software, chip design, networking for automotive companies, and verification & testing for semiconductor companies.
Systime Global Solutions is a wholly owned subsidiary of the CMS Group and focuses on Oracle’s solution JD Edwards practice.
Earlier, ChrysCapital V LLC, a fund managed by ChrysCapital Investment Advisors, had picked 8.8 per cent stake for a total consideration $24.8 million in KPIT Cummins. KPIT’s FY11 revenues grew by 46 per cent year on year at Rs 1,000 crore ($224.07 million).