KPIT Cummins acquires U.S., French firms

By agencies   |   Wednesday, 23 November 2005, 08:00 Hrs
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PUNE: The Pune-based KPIT Cummins Infosystems are on the verge of rapid expansion. The company has acquired a U.S.-based company SolvCentral and a French company Panex Consulting. The board of directors approved the decision to acquire both the companies.

Announcing the acquisition, KPIT Cummins Chairman and Group Chief Executive Officer, Ravi Pandit said, “The company had entered into a definitive agreement to acquire 90 percent stake of SolvCentral for $2 million and the remaining equity stake would be acquired over a three-year period. He noted that the price would be based on quality and quantity of revenues and would be a mix of cash and stock options.”
The revenue of SolvCentral would be around $3.5 million for the current year. The revenue growth (CAGR 2001-04) was around 81 percent and the profit growth was about 95 percent. The company has the total headcount of 30 personnel with small presence in Indore.

Commenting on the Paris-based Pivolis Consulting, he said, KPIT Cummins would acquire 70 percent stake for a consideration of 1.75 million Euros, comprising 50 percent cash and 50 percent stock.
Pivolis is an offshore consulting services providing company. With this acquisition KPIT Cummins would be able to establish its presence in France, the second largest economy in Europe.

Putting light on company’s future acquisition plans, Pandit said, the company was looking at China and Eastern Europe. The Eastern Europe could be used as a near-shore operation to other European markets and China to tap into the markets of Japan. He said, “Though no plans are on the anvil, the company is studying these two markets.”

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