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KPIT Technologies to acquire Vayavya Labs

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KPIT Technologies on Wednesday (11 March 2020) said it will acquire a majority stake in Vayavya Labs (VL).

Vayavya Labs (VL) is an embedded software company focused on hardware-software interface tools & methodologies. VL currently employs 70+ people, having its development centers in Belgaum and Bengaluru. It has a turnover of Rs 9.13 crore as on 31 March 2019. For FY2020, VL is expected to have revenues of around Rs 14-15 crore with EBITDA of 15%+. The proposed deal will be EPS accretive.

The proposed acquisition of VL will give KPIT a head start in the field of simulation and embedded software automation, across the focus practices of KPIT. It will also help in creating a differentiated positioning and a definite early mover advantage in newer opportunities in the areas of simulation.

The deal is subject to customary closing conditions and is expected to get closed in the first quarter of FY2021.

The total consideration for 100% stake will not exceed Rs 41.80 crore. Initially 78.47% stake is proposed to be purchased for a consideration of Rs 24.56 crore. The balance 21.53% stake is proposed to be acquired over a period of 2 years.

KPIT Technologies operates as a technology company. The company specializes in embedded software, artificial intelligence, and digital solutions. It serves automobile industry worldwide.

On a consolidated basis, the company's net profit rose 13.7% to Rs 72.68 crore on a 47.8% jump in net sales to Rs 833.29 crore in Q3 December 2019 over Q3 December 2018.

Shares of KPIT Technologies slumped 5.89% to Rs 73.50. It has traded in the range of Rs 73 and Rs 90 so far during the day.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 12 2020. 10:26 IST
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