KPIT Technologies Limited, a leading global IT consulting and product engineering services company, has taken a significant step in expanding its international presence by acquiring Caresoft Global Technologies and associated entities. This development marks a strategic milestone for KPIT, strengthening its footprint in the USA, UK, Mexico, and Italy, and enhancing its delivery capabilities across key markets.

Background of the Acquisition

Initially announced on May 6, 2025, KPIT Technologies had informed the market about the proposed acquisition of Caresoft for a total consideration of up to US$191 million. The transaction involved multiple entities, including Caresoft Global Technologies, Inc. USA, Caresoft Engineering Services Limited, UK, CARE GLOTECH de RL de CV Mexico, and OXI SRL Italy.

Following completion of customary closing conditions and adjustments in the global business environment, both parties renegotiated the total consideration to a maximum of US$157 million, including US$15 million variable pay based on achieving revenue targets and business synergy milestones.

The acquisition aligns with KPIT’s strategy to expand its global operations, broaden its technology offerings, and strengthen delivery in key geographies, particularly the USA and Europe.

Initial Equity Infusion

In anticipation of closing the transaction, KPIT Technologies Limited infused EURO 28 million into KPIT Technologies (UK) Limited and USD 28 million into KPIT Technologies Holding Inc, USA. This step ensured sufficient capital in subsidiaries to complete the equity acquisition of Caresoft entities.

Completion of Initial Consideration

On August 15, 2025, KPIT announced that, after satisfying all conditions precedent, KPIT Technologies (UK) Limited and KPIT Technologies Inc, USA paid the initial consideration of USD 51 million for the 100% equity acquisition of Caresoft Global Technologies, Inc. USA, Caresoft Engineering Services Limited UK, and CARE GLOTECH de RL de CV Mexico.

This milestone indicates KPIT’s commitment to its international expansion strategy and reinforces its capability to integrate global operations while delivering technology-driven solutions to diverse industries.

Strategic Significance

1. Global Expansion:
   With this acquisition, KPIT strengthens its presence in North America, Europe, and Latin America, enabling the company to serve larger clients across multiple sectors, including automotive, manufacturing, and IT services.

2. Enhanced Capabilities:
   Caresoft brings specialized technology expertise, enabling KPIT to expand its service portfolio in areas such as software development, cloud solutions, and product engineering services.

3. Revenue and Synergy Potential:
   The transaction includes variable consideration linked to performance milestones, ensuring alignment between KPIT and Caresoft in achieving revenue and business synergy targets. This approach helps maximize long-term value creation for KPIT shareholders.

Management Commentary

While the company’s General Counsel & Company Secretary, Ashish Malhotra, officially communicated the update to the BSE and NSE, KPIT’s management has emphasized that this acquisition reinforces KPIT’s global delivery capabilities, enhances technology expertise, and positions the company to capture new growth opportunities in key international markets.

KPIT Technologies has consistently focused on innovative, technology-driven solutions for clients in the automotive, energy, and mobility sectors. Integrating Caresoft’s teams and capabilities is expected to accelerate KPIT’s global service delivery and client reach.

About KPIT Technologies

KPIT Technologies Limited is headquartered in Hinjawadi, Pune, and operates as a global IT consulting and product engineering services company. With expertise in automotive, mobility, industrial, and energy sectors, KPIT delivers technology solutions, consulting, and engineering services to clients across multiple geographies.

The company has consistently pursued a growth strategy combining organic expansion with strategic acquisitions, and the Caresoft acquisition is a continuation of this approach.

About Caresoft

Caresoft, a global technology services provider, operates in USA, UK, Mexico, and Italy, offering software engineering and consulting services. The company has a strong client base in critical sectors, and its technical expertise complements KPIT’s existing offerings, enabling a more comprehensive global service delivery.

Financial and Operational Outlook

While the total acquisition consideration has been revised to US$157 million, including performance-linked variable pay, KPIT Technologies has strategically funded the equity acquisition through its international subsidiaries, ensuring adequate liquidity for seamless integration.

The integration of Caresoft is expected to provide KPIT with:

• Expanded global delivery centers and workforce expertise

• Increased capabilities in emerging technologies

• Potential revenue synergies from cross-selling opportunities

• Strengthened market presence in North America, Europe, and Latin America

This acquisition aligns with KPIT’s long-term goal of becoming a leading global technology solutions provider, with a focus on innovation, digital transformation, and operational excellence.

Conclusion

The completion of the initial USD 51 million payment for acquiring Caresoft represents a strategic milestone for KPIT Technologies Limited. It not only demonstrates the company’s commitment to global expansion but also enhances its service capabilities, strengthens its delivery network, and positions it for future growth in key international markets.

Investors and stakeholders can expect KPIT to leverage this acquisition to expand revenue streams, optimize operational efficiencies, and deliver innovative technology solutions on a global scale.

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