KPIT acquires Caresoft's Engineering business for $191 mn to deepen focus on trucks, off-highway segments

KPIT

KPIT Technologies has acquired the engineering solutions business of Caresoft Global for $191 million, the mid-tier technology firm said on May 6, aiming to deepen its focus on the commercial vehicle segment and expanding presence in China.

The deal strengthens KPIT’s capabilities in delivering cost-optimised and innovative engineering solutions for trucks, off-highway, and passenger mobility players, the company said in a release.

“The mobility industry is at an inflection point, where cost, speed, and innovation need to go hand-in-hand,” Kishor Patil, co-founder, CEO and MD, KPIT Technologies, said.

“OEMs are looking for partners who can integrate software, hardware, and manufacturing seamlessly. Caresoft’s capabilities will help us deliver unmatched value to OEMs globally while strengthening our reach into China.”

The acquisition brings together Caresoft’s deep domain expertise and longstanding relationships in the trucks and off-highway space with KPIT’s software and systems engineering strengths.

The Pune-headquartered firm has been vocal about its plans to deepen focus on the Chinese market.

The deal will also provide KPIT with advanced manufacturing and industrial engineering capabilities, including plant layout planning and assembly line optimisation. It aims to help OEMs make cost-effective and efficient design choices early in the vehicle development cycle.

KPIT will acquire the carved-out engineering solutions business of Caresoft, which is known for its cost benchmarking, teardown expertise, and cost reduction strategies that have saved billions of dollars for global OEMs, the release said.

The acquisition also aligns with KPIT’s plans to expand in China, where Caresoft already enjoys strong relationships with OEMs, especially in the new energy vehicle segment.

Avendus Capital was the adviser to the transaction.