KPIT Technologies share price climbed 5 percent intraday on September 22 as foreign research firm Goldman Sachs maintained the 'buy' rating on KPIT Technologies with a target price of Rs 900 per share.
According to research house, Technica’s CY21 revenue/EBITDA represents 16 percent/ 17 percent of the company’s FY22 Revenue/EBITDA, while on the EV/EBITDA basis, cash consideration for Technica implies 10x Vs KPIT’s 26x, reported CNBC-TV18.
On September 21, the board of directors of KPIT Technologies approved the acquisition of Technica Engineering Gmbh, Germany, Technica Electronics Barcelona SL, Spain and Technica Engineering Spain SL, Spain through KPIT Technologies GmbH, a wholly owned step-down subsidiary of the company of 100 percent shareholding and Technica Engineering Inc, USA through KPIT Technologies Inc, another similar subsidiary.
The deal is expected to be closed by the end of October after fulfillment of customary closing conditions, and at the end of it, Technica Group will be fully owned by KPIT Technologies, the company said in a release.
Around €80 million of fixed consideration to be paid over six months, while a maximum €30 million variable consideration based on achievement of revenue and profit milestones will be payable over the next 2.5 years, it added.
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"Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering services to end consumers. We are constantly looking for possibilities to help accelerate our client's vision. With Technica Engineering, we will strengthen
value and scale of operations across the stack," said Kishor
Patil, Co-founder, CEO and MD of KPIT Technologies.
"We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies," he added.
At 10:02 hrs KPIT Technologies was quoting at Rs 623.50, up Rs 24.70, or 4.12 percent on the BSE.
The share touched a 52-week high of Rs 800 and a 52-week low of Rs 300.10 on 10 January, 2022 and 29 October, 2021, respectively. It was trading 22.06 percent below its 52-week high and 107.76 percent above its 52-week low at the time of filing the story.
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