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Business Upturn
a day ago
- Automotive
- Business Upturn
KPIT Technologies completes acquisition of Caresoft for $157 million
By Aditya Bhagchandani Published on August 16, 2025, 13:11 IST KPIT Technologies announced on Friday that it has completed the acquisition of Caresoft, finalizing the deal at a revised value of up to USD 157 million. The transaction covers Caresoft Global Technologies, Inc. USA, Caresoft Engineering Services Limited, UK, CAREGLOTECH de RL de CV Mexico, and OXI SRL Italy. The acquisition was first disclosed in May 2025 with an estimated deal size of USD 191 million. However, after negotiations and considering changes in the global business environment, the final consideration was reduced to USD 157 million, which also includes a USD 15 million variable pay component tied to revenue and business synergy milestones. Ahead of the completion, KPIT had infused EURO 28 million and USD 28 million into its UK and US subsidiaries, respectively, to strengthen the capital structure required for the acquisition. Following the satisfaction of all precedent conditions, KPIT Technologies (UK) Limited and KPIT Technologies Inc, USA have paid the initial consideration of USD 51 million to acquire full ownership of the Caresoft entities. This acquisition aligns with KPIT's strategy of strengthening its global presence in automotive engineering and expanding capabilities across the U.S., Europe, and Mexico. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Standard
08-08-2025
- Business
- Business Standard
KPIT Technologies finalizes acquisition of Caresoft at USD 157 million
The Board of KPIT Technologies at its meeting held on 08 August 2025 has noted the update on acquisition of Caresoft. This is with reference to our intimation dated May 6, 2025, wherein we had informed about the acquisition of Caresoft (Caresoft Global Technologies, Inc. USA, Caresoft Engineering Services Limited, UK, CAREGLOTECH de RL de CV Mexico, OXI SRL Italy) for total consideration of up to US$191 Million. Further to the completion of customary closing conditions and overall changes in the macros business environment, the parties together renegotiated the consideration amount for Caresoft. Subsequently, the amount for acquisition of Caresoft is finalized at total consideration up to US$ 157 Million (including US$ 15 Million variable pay based on achievement of revenue and other business synergy milestones). This consideration can be paid for in one or more tranches over a period of 4 years. Other terms & conditions of said agreement remain unchanged. This acquisition will strengthen KPIT's Vehicle Engineering & Design and Truck, Off-Highway offerings as it will integrate downstream engineering and benchmarking services. This will help the company achieve a faster go-to market for products, resulting in cost savings for OEMs.
Business Standard
24-06-2025
- Automotive
- Business Standard
KPIT Tech drops after mid-quarter update flags near-term challenges
KPIT Technologies slipped 5.29% to Rs 1317.25 after the company released its mid-quarter update for June 2025, which painted a mixed picture of near-term business momentum and execution risks. The update included an announcement on the acquisition of Caresoft's Global Engineering Solutions business, approved by the board in May 2025. While KPIT confirmed that the deal is progressing, it clarified that certain closing conditions still need to be met. The company expects to complete the acquisition by the end of the current quarter, with revenue contributions from the acquired business likely to begin in Q2 FY26. Management estimates that the deal could add around 4% growth in FY26 compared to FY25, while also enhancing KPITs capabilities in the truck and off-highway segment, manufacturing engineering solutions, and aiding its entry into the China market. However, investors were more focused on the cautionary signals in the broader business commentary. While the deal pipeline remains strong, KPIT noted that conversions are slower than anticipated. Although Europe is showing signs of recovery, the US and Asia are still facing uncertainties, and the pace of ramp-ups has been even more sluggish than previously expected. Some new business wins are also partially cannibalizing existing revenues due to tight client budgets and a shift in spending priorities. Adding to investor concerns, KPIT indicated that it does not expect any one-time gains in Q1 FY26 like it saw in Q4 FY25. The company also flagged potential pressure on other income due to recent forex fluctuations, further dampening the near-term outlook. Despite the long-term strategic benefits of the Caresoft acquisition, the mid-quarter update appears to have triggered a reality check for the market. Slower execution, deal ramp-up delays, and muted Q1 guidance have collectively contributed to the stocks sharp decline, as investors reassess the near-term earnings visibility. KPIT Technologies is a global software development and integration partner for the automotive and mobility industry, focused on enabling software-defined vehicles. The company specializes in embedded software, AI, and digital solutions, supporting clients in adopting next-generation mobility technologies. On a consolidated basis, the company's net profit surged 48.91% to Rs 244.73 crore on 15.98% increase in net sales to Rs 1,528.34 crore in Q4 March 2025 over Q4 March 2024.
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Business Standard
24-06-2025
- Business
- Business Standard
KPIT stock slips 6% after mid-quarter update; should you buy, hold or sell?
KPIT Technologies share price today Shares of KPIT Technologies slipped 6 per cent to ₹1,310.45 on the BSE in Tuesday's intra-day trade after the company in its mid-quarter update said that the overall business environment continues to be uncertain with rising geopolitical concerns and ambiguity around the overall tariff scenario. In the past four trading days, the stock price of the computer software & consulting company has dipped 8 per cent. It had hit a 52-week low of ₹1,020.60 on April 7, 2025. At 11:23 AM; KPIT was trading 5 per cent lower at ₹1,318.75 on the BSE. In comparison, the BSE Sensex was trading higher by 1.2 per cent at 82,848. The average trading volumes at the counter jumped nearly two-fold, with a combined 3.2 million shares changing hands on the NSE and BSE. KPIT mid-quarter update KPIT in its mid-quarter update said the 100 per cent acquisition of Caresoft's Global Engineering Solutions business, approved by the board on May 6, 2025, was expected to close by the end of the current quarter. Revenue from the acquired business is expected to be consolidated from Q2FY26, contributing an estimated 4 per cent growth in FY26 over FY25. Additionally, the company expects increased offshoring to help optimise costs but has guided for the absence of one-time gains in Q1FY26 and a potential dip in other income due to forex volatility. Early but strategic wins have emerged in the Trucks and Off-highway segment, though some are partially cannibalising existing revenues due to clients' limited budgets. The deal pipeline remains strong, however, conversions and ramp-ups are slower than anticipated, especially in the US and Asia, while Europe shows relatively stronger momentum. 'For KPIT, the pipeline continues to be strong, though the conversions are much slower than expected. Substantial pipeline however is moving in a positive direction. In geographic, Europe is looking positive. USA /Asia are a bit uncertain. The ramp-ups for the wins are progressing at an even slower pace than what was anticipated at the end of the last quarter,' the company said. Track LIVE Stock Market Updates ICICI Securities view on KPIT post mid-quarter update KPIT's acquisition of Caresoft's Global Engineering Solutions business is a strategically aligned move that enhances its presence in the Trucks and Off-highway segment while strengthening its manufacturing engineering capabilities and supporting its entry into the China market. While the consolidation is expected to contribute around 4 per cent growth in FY26, the overall outlook remains tempered by macro uncertainties, including geopolitical risks and tariff-related ambiguity, ICICI Securities said in a note. According to the brokerage view, the slower pace of deal conversions and ramp-ups (in the US and Asia), alongside some revenue cannibalisation from budget-constrained clients, could weigh on near-term performance. That said, continued offshoring and steady traction in Europe may offer some cushion, it added. JM Financial Institutional Securities view on KPIT KPIT did not provide any guidance for growth or margin for FY26. It cited difficulty in determining the pace of deal to revenue conversion as reason for the same. Though it did mention that some of these deals are already in the transition phase, suggesting imminent pick-up once clarity emerges. Management indicated that while the macro environment remains fluid, the medium-term growth drivers are intact. They expect broad-based growth across geographies, with Europe anticipated a rebound as trade dynamics stabilize over the next few months. KPIT emphasized that transformation and large program ramps are expected to meaningfully contribute from H2 FY26. Margin stability remains a priority, with focus on AI-led productivity improvements, cost-effective delivery models, and platform-based engagement approaches. Analysts at JM Financial Institutional Securities post Q4 results, lowered FY26 cc growth estimate by 300bps. However a 500bps favourable cross-currency swing (based on current FX) results in higher USD estimates, limiting changes to EPS. KPIT's order backlog and execution should help it navigate the current macro, the brokerage firm said in the result update.
Economic Times
24-06-2025
- Automotive
- Economic Times
KPIT Tech shares fall over 5% after caution on slower deal closures, demand uncertainty
KPIT Technologies' shares declined by 5.4% due to a flagged weak demand environment and slower deal closures. Despite this, the company's board approved the complete acquisition of Caresoft's Global Engineering Solutions business, pending certain closing conditions. The revenues from Caresoft are expected to be consolidated starting in Q2FY26, potentially adding approximately 4% to KPIT's overall revenue in FY26 over FY25. Tired of too many ads? Remove Ads The acquisition is aimed at: Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads KPIT Tech Share Price Target Shares of KPIT Technologies dropped 5.4% to Rs 1,315 in Tuesday's intraday trade on the BSE after the company flagged a weak demand environment and slower-than-expected deal company also announced that its board has approved the 100% acquisition of Caresoft's Global Engineering Solutions business. However, the deal is subject to certain closing conditions, which both parties are working to fulfil. KPIT expects to complete the transaction by the end of the current quarter, barring unforeseen revenues from Caresoft's business are expected to be consolidated starting Q2FY26 and could add approximately 4% to KPIT's overall revenue in FY26 over FY25.- Strengthening KPIT's position in the Trucks and Off-highway segment- Expanding its manufacturing engineering portfolio- Enhancing full vehicle cost-reduction capabilities for clients- Accelerating entry into the China marketDespite a healthy deal pipeline, KPIT noted slower conversion rates, attributing the caution to geopolitical tensions and uncertainties around global tariff policies. Europe remains a bright spot, while demand from the USA and Asia continues to face headwinds. The company also reported a few early strategic wins in the Trucks and Off-highway ahead, KPIT expects further growth in offshoring to help lower overall company also clarified that there will be no one-time gains in Q1FY26, unlike Q4FY25. Additionally, other income may decline due to recent forex to Trendlyne, the average target price for KPIT Technologies is Rs 1,401, implying an upside potential of around 6% from current levels. Of the 20 analysts tracking the stock, the consensus rating is 'Buy'.The stock's Relative Strength Index (RSI) is at 58.7, reflecting neutral momentum. The MACD stands at 24 and remains above both its centre and signal lines, indicating a bullish trend.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
