KPIT Technologies Limited has announced the 100% acquisition of the global engineering solutions business of Caresoft, marking a strategic move to strengthen its offerings in the commercial vehicle and off-highway engineering space. The acquisition includes four international subsidiaries—Caresoft Global Technologies, Inc. (USA), Caresoft Engineering Services Limited (UK), CAREGLOTECH de RL de CV (Mexico), and OXI SRL (Italy)—collectively referred to as “Caresoft Entities.”

The Board of Directors of KPIT approved the transaction at its meeting held earlier today. The total consideration for the acquisition will be up to USD 191 million, including a variable payout of USD 25 million linked to revenue and business synergy milestones. The transaction is expected to be completed over the next three years and will be funded largely through internal accruals, either directly or via KPIT’s global subsidiaries.

Caresoft is known for its deep expertise in automotive benchmarking, cost-reduction strategies, and engineering solutions, particularly in the truck, bus, and off-highway segments. As part of the transaction, KPIT will acquire the engineering services business, while Caresoft retains its benchmarking division, with the two companies continuing to collaborate in that area.

“This acquisition is aligned with KPIT’s long-term strategic focus on the commercial vehicle segment,” the company stated. “It brings Caresoft’s domain expertise, client relationships, and 900+ skilled professionals into KPIT’s fold, enhancing our full-vehicle cost-reduction and manufacturing engineering capabilities globally.”

KPIT also expects this move to accelerate its expansion into the Chinese market and to create cross-selling opportunities between Caresoft’s and KPIT’s client bases. The acquisition is expected to be earnings per share (EPS) accretive in the first year itself, after accounting for non-cash charges under IND AS.

The acquired businesses collectively generated USD 51 million in revenue in 2024, up from USD 44.3 million in 2022. The UK entity, Caresoft Engineering Services Limited, was newly formed to support the restructuring and carve-out of the business being acquired.

To facilitate this and future strategic expansions, KPIT will seek shareholder approval to increase investment limits under Section 186 of the Companies Act, 2013, via postal ballot in the coming weeks.

No regulatory approvals are required for the completion of this acquisition.

Search Keyword: KPIT Technologies, Caresoft acquisition, global engineering solutions, commercial vehicle engineering, off-highway engineering, Caresoft Global Technologies, Caresoft Engineering Services UK, CAREGLOTECH Mexico, OXI SRL Italy, Caresoft Entities, KPIT Board approval, USD 191 million acquisition, variable payout, business synergy, internal accruals, global subsidiaries, automotive benchmarking, cost-reduction strategies, truck engineering, bus engineering, off-highway vehicle solutions, strategic acquisition, engineering services, manufacturing engineering, full-vehicle optimization, 900 professionals, domain expertise, client relationships, KPIT strategic focus, Chinese market expansion, cross-selling opportunities, EPS accretive, IND AS accounting, USD 51 million revenue, Caresoft restructuring, Section 186 Companies Act, shareholder approval, postal ballot, no regulatory approval, long-term strategy, engineering talent acquisition, KPIT global expansion, commercial vehicle segment, engineering innovation, integration strategy, revenue milestones, business integration, Caresoft carve-out, skilled workforce, synergy creation, benchmarking collaboration, international subsidiarie,