KPIT acquires CPG solutions for $13.2 Million

By SiliconIndia   |   Tuesday, 28 September 2010, 12:50 Hrs
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Pune : Reversing the recent trends of U.S. companies acquiring the Indian companies, Pune based KPIT Cummins info system , a global IT consulting and product engineering firm has acquired the U.S based CPG solution , a provider for premium Oracle consulting service for $13.2 Million. After the acquisition, KPIT Cummins shares ended 0.7 percent down at 172 on the BSE.

CPG Solutions, which has around 50 employees and revenue of $11 million this year, will enable KPIT Cummins to deepen its Oracle consulting portfolio. Kishor Patil, Managing Director, CEO of KPIT Cummins said,"The revenue from Oracle consulting practice is around $27 Million. The acquisition will take it to $40 million and KPIT expects the market will grow to $100 million over the next three years". Jim Daleen, CEO, CPG Solutions added on to it saying, "The deal will enable CPG to provide global scale and off-shore services options to our customers. The combined services portfolio from both companies coupled with focus on our target industries puts us in the best possible position to enable Oracle customers maximize value from their technology investments."

The approval was given at its meeting held on Sept 27 2010. KPIT expects to add another $6 Million in revenues from this buy for the current fiscal. They are focused on the manufacturing, energy and utilities industry which accounts for 85 percent of its revenues. The acquisition of CPG will further strengthen its position as a preferred Oracle partner for manufacturing companies and is designed to complement KPIT's strengths in global ERP rollouts, implementation and support and maintenance services.

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