New Delhi: An independent software development and integration partner to the automotive and mobility ecosystem, KPIT Technologies Ltd, on Wednesday announced the acquisition of cloud-based vehicle diagnostics specialist SOMIT solutions.
KPIT’s Board approved the acquisition through KPIT Technologies, UK, a wholly-owned subsidiary of KPIT Technologies, of an initial 65% shareholding in SOMIT Solutions in the first tranche this month. Further, for over a period of six months, KPIT will acquire the balance shareholding, the board stated.
The total consideration for 100% shareholding will not exceed 7.68 million pound over a 3-year period and the deal is to be completed by the third quarter of the current financial year.
Kishor Patil, Co-founder, CEO, and MD, KPIT Technologies, said, “SOMIT has created a niche for themselves in the challenger EV OEM segment. Their cloud-based platform complements KPITs existing after-sales platform to offer a more integrated solution for the benefit of our T25 clients. KPITs strategic T25 clients will benefit immensely.”
Generating revenue through the lifecycle of a vehicle is a key priority for OEMs and the two companies will better enable their OEM clients in realizing this strategic objective. According to the KPIT Ceo, this objective will be one of the fastest-growing market opportunities in the next three to five years.
SOMIT enables after-sales operations of high-tech luxury and new age OEMs through a cloud-based vehicle diagnostics platform & expert consulting services. According to the company, its cloud-based platform features an intelligent and intuitive diagnostics solution that will enhance a service technician’s user experience and improve service quality by increasing the ratio of first-time-right repairs.
“We are thrilled to join forces with KPIT. KPITs’ global leadership in the mobility ecosystem and complementary expertise in vehicle diagnostics will help us to offer holistic solutions to clients. Together we will create leadership and innovation in this business segment,” added Julian Soanes, Founder and CEO, SOMIT solutions.
The company’s vision is to build cloud-based, scalable diagnostics and aftersales solutions that offer comprehensive coverage that will be strengthened by KPIT, it said.
Vehicle complexity is outgrowing existing servicing capabilities due to rapidly evolving software-centric architectures, high-tech automotive engineering, and an acute shortage of trained and certified service technicians across the globe.