KPIT Tech announced on Wednesday that its board of directors has approved the acquisition of four Technica group companies for a fixed value of Euro 80 million (Rs 640 crore) payable over 6 months. The transaction is expected to close in late October 2022, after customary closing conditions are met, at the end of which the Technica Group will be fully owned by KPIT Technologies.
The Board of Directors approved the acquisition of Technica Engineering Gmbh, Germany, Technica Electronics Barcelona S.L., Spain, and Technica Engineering Spain S.L., Spain through KPIT Technologies GmbH, a wholly-owned subsidiary of a 100% public limited company and Technica Engineering Inc, USA USA through KPIT Technologies Inc., a wholly-owned subsidiary of the company that owns 100% of the shares,” KPIT Tech reported in a stock filing.
KPIT Technologies GmbH and KPIT Technologies Inc. will acquire (wholly owned subsidiaries of the company) over 100% of the shareholding upfront.
Target entities have automotive leadership in production-ready system prototyping (a combination of network system architecture, hardware prototyping, and integration), automotive Ethernet products, and validation tools.
Technica Germany is present in Germany, France, Sweden and Asia, with a current workforce of 275 employees. It is based in Munich, Germany. For its part, Technica Barcelona has a presence in Spain, with a current workforce of 50, and is based in Barcelona, Spain.
Technica Vigo is located in Spain, with a current workforce of 4 (number of employees). It is based in Vigo, Spain. Whereas Technica US has a presence in the United States where it has 4 current employees (No. of employees). It is based in Bloomfield Hills, Michigan, USA.
The company said that the amount of 80 million euros will be paid in 6 months, adding that the variable amount with a maximum of 30 million euros depending on the generation of income and profits must be paid in the next 2.5 years.
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