Automotive and mobility-focused tech company KPIT Technologies Ltd said Tuesday it has inked a deal to acquire the engineering solutions division of US-based Caresoft Global for up to $191 million (Rs 1,614 crore).
The acquisition will involve full ownership of four units: Caresoft Global Technologies, Inc. (USA), Caresoft Engineering Services Ltd (UK), CAREGLOTECH de RL de CV (Mexico), and OXI SRL (Italy).
Caresoft Global provides automotive benchmarking and cost reduction-oriented engineering solutions. As part of the deal, it will restructure its business into benchmarking and engineering solutions units. KPIT will then acquire the carved-out engineering solutions business globally, which focuses on off-highway, truck and bus segments.
KPIT will also partner with Caresoft in its benchmarking business, the company said in a statement.
Caresoft Global is led by former Case New Holland executive Mathew Vachaparampil. It generated revenue of $51 million in 2024, up from $50 million the previous year and $44.3 million in 2022, from its engineering solutions business.
The proposed deal values the asset at close to 4x its revenue.
The total deal value of $191 million includes variable consideration of $25 million based on certain milestones to be paid in one or more tranches over a period of four years. It will finance the bulk of the proposed deal via internal accruals.
KPIT said the deal is accretive to its operating margins. The Pune-based firm has been growing organically and via acquisitions with a compound annual pace of 28.2% in the last three years. All previous acquisitions have been EPS-accretive and KPIT has funded those with internal accruals.
Avendus Capital was the advisor to KPIT on the latest transaction.
KPTI said that, in line with its focus on the commercial vehicle segment, this partnership will boost its relationships and domain knowledge in trucks and off-highway segments; accelerate its foray into China; ramp up value creation through full vehicle cost reduction solutions for passenger car, trucks and off highway segments; and provide manufacturing engineering solutions for mobility segment.
“Original equipment manufacturers today are looking for partners who can seamlessly integrate software, hardware, and manufacturing functions. With Caresoft’s strong domain expertise, this acquisition enhances our ability to deliver value to our clients while accelerating our entry into the Chinese market,” said Kishor Patil, CEO and Managing Director, KPIT.
Last month, KPIT Technologies reported a consolidated net profit of Rs 244.7 crore for the quarter ended March 2025, marking a 48.9% increase from Rs 164.3 crore in the same period last year. Revenue for the March quarter stood at Rs 1,528.3 crore, reflecting a year-on-year growth of 15.9% over the corresponding quarter of the previous year.
Shares of KPIT Technologies have corrected by a third from their high last July. The price has bounced back around 18% in the past one month, outpacing a 10% rise in the broader benchmark indices in the same period.
The negative sentiments around the impact of US President Donald Trump’s import tariffs on the global economy and automobiles, in particular, had led to a sharper correction in its stock previously.
