KPIT Technologies to acquire Future Mobility Solutions

KPIT Technologies, an auto-engineering services firm in Pune, will acquire Future Mobility Solutions (FMS), which develops embedded software solutions for the mobility Industry, for €15.6 million (Rs 135 crore).

KPIT Technologies has acquired 25 percent of the German company in the first tranche, and will buy out the remaining stake before April 2024, the company said in a stock exchange filing.

FMS carries out software and feature development in areas of mobility, such as autonomous driving, advanced driver-assistance systems, vehicle safety and integration and validation. It recorded a turnover of  €4.3 million (Rs 37.3 crore) in calendar year 2020, and expects to complete 2021 at €5.4 million. 

"FMS will add certain unique proprietary offerings in the autonomous driving domain," KPIT Technologies said in the exchange filing. "The partnership will improve KPIT access to one strategic client with new offerings, and strengthen KPIT's market presence in Germany.”

In June this year, the company had agreed to buy a controlling stake in operating system solution provider PathPartner Technology. It bought a 60 percent controlling stake in PathPartner for Rs 89 crore, and will buy the remaining stake in the next two years for not more than 191 crore.

KPIT recorded consolidated income of Rs 2,035.74 crore in fiscal year 2021, down 6 percent from the year before. It increased its net cash balance to Rs 822.4 crore from Rs 327.8 crore at the beginning of the year.

KPIT Technologies is involved in software for CASE (Connected, Autonomous, Shared, Electric) domains, as market demand is on the rise for connected and advanced technology systems, autonomous and electric vehicles, and shared mobility.

“There is a strong investment re-orientation towards electrification, autonomous and digital cockpit,” KPIT Technolgies' CEO Kishor Patil and president Sachin Tikekar, said in a joint letter in the latest annual report. “With a strong financial base, we are now confidently positioned to make strategic investments that will assert our growth trajectory.”