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KPIT: How is the Technica acquisition shaping up?

The deal will offer business synergies but KPIT’s valuation is above comfort level

September 23, 2022 / 03:02 PM IST
KPIT: How is the Technica acquisition shaping up?

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights  Deal consideration of €80 million plus earn-out Technica has an annual revenue run rate of €43 million Our estimate indicates acquisition to be EPS accretive Acquisition is likely to be financed internally Valuation rich KPIT (CMP: Rs 599.5 Market Cap: Rs 16,434 crore) has announced the acquisition of Technica Engineering — a Munich-headquartered German technology company — for a consideration of €80 million (to be paid over six months) plus a revenue & profit milestone linked earn-out agreement of up to €30 million payable over...

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