KPIT Cummins (BSE: 532400; NSE: KPIT), a leading product engineering and IT consulting partner to manufacturing companies, today announced that it has completed the merger of German vehicle diagnostics and telematics specialist In2Soft Gmbh.
Strategic Rationale
The merger of Munich based In2Soft, is in line with KPIT Cummins' stated growth strategy to sharply focus on select industries and achieve market leadership by creating best in class offerings for its global customers. This agreement is expected to result in increased profitability, greater efficiencies and increased market share. Key highlights
- Capabilities in vehicle diagnostics: The worldwide automotive diagnostics market is slated to grow at a faster pace accelerated by the Euro 5/6 (Europe) and EPA (USA) regulations, WWH-OBD. In2Soft is a leader in new standards in diagnostics (MVCI, ODX, OTX, D-PDU API, DoIP) and offers a complete tool chain (as product) for diagnostic communication (wired, wireless, remote, internet) to several European OEMs and Tier1s.
- Expanded portfolio: KPIT's customers across US, Asia Pacific (APAC) and emerging markets will get access to highly advanced automotive diagnostics solutions and In2Soft's customers will be able to leverage KPIT's product engineering capabilities across multiple automotive sub-systems.
- Enhanced access to OEM customers: Diagnostics is an important OEM offering, and addition of the diagnostics capability to the portfolio will provide KPIT an opportunity to deepen its relationship with German OEM customers.
- Strong Near-shore capabilities: This agreement will strengthen KPIT's near-shore presence which is essential to service German and European customers.
Commenting on the acquisition, Kishor Patil, MD & CEO, KPIT Cummins said that "Vehicle diagnostics are very high on automotive OEMs priority worldwide and we will now leverage the technology developed by In2Soft to service automotive OEMs across US and emerging markets in addition to Europe. With In2Soft we will build a local onsite and near-shore presence which is essential for key German customers. We expect a very profitable synergy with In2Soft and welcome the In2Soft team to the KPIT family."
"We are very happy to join KPIT Cummins which is very sharply focused on the automotive industry. KPIT's larger geographic presence across US, Europe and APAC will complement our strong relationships in the German automotive industry. We are confident that our combined and complementary strengths will help us create a leadership position in the diagnostics & telematics space and accelerate growth by creating more value for our customers." Guven Kivran, Managing Director, In2Soft.
Notes for the Editor:
- MVCI : Modular Vehicle Communication Interface
- ODX : Open Diagnostic Data Exchange
- OTX : Open Test sequence eXchange format
- D-PDU API : Diagnostic Protocol Data Unit Application Programming Interface
- DoIP : Diagnostics Over Internet Protocol
- WWH-OBD : World Wide Harmonised On-Board-Diagnostic
About KPIT Cummins
KPIT Cummins Infosystems Limited (BSE: 532400; NSE: KPIT), a trusted global IT Consulting and product engineering partner, is focused on co-innovating domain intensive technology solutions for Manufacturing corporations (with special focus on Automotive, Hi-Tech & Industrials verticals) to help its customers become efficient, integrated and innovative enterprises. A leader in technology solutions and services, KPIT Cummins currently partners with 100+ global Manufacturing corporations including 50+ Original Equipment Manufacturers (OEMs), semiconductor companies and Tier 1s, helping them globalize efficiently & bring complex technology products/ systems faster to their global markets.
Please visit www.kpitcummins.com for more information.
Forward Looking Statements
Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
Strategic Rationale
The merger of Munich based In2Soft, is in line with KPIT Cummins' stated growth strategy to sharply focus on select industries and achieve market leadership by creating best in class offerings for its global customers. This agreement is expected to result in increased profitability, greater efficiencies and increased market share. Key highlights
- Capabilities in vehicle diagnostics: The worldwide automotive diagnostics market is slated to grow at a faster pace accelerated by the Euro 5/6 (Europe) and EPA (USA) regulations, WWH-OBD. In2Soft is a leader in new standards in diagnostics (MVCI, ODX, OTX, D-PDU API, DoIP) and offers a complete tool chain (as product) for diagnostic communication (wired, wireless, remote, internet) to several European OEMs and Tier1s.
- Expanded portfolio: KPIT's customers across US, Asia Pacific (APAC) and emerging markets will get access to highly advanced automotive diagnostics solutions and In2Soft's customers will be able to leverage KPIT's product engineering capabilities across multiple automotive sub-systems.
- Enhanced access to OEM customers: Diagnostics is an important OEM offering, and addition of the diagnostics capability to the portfolio will provide KPIT an opportunity to deepen its relationship with German OEM customers.
- Strong Near-shore capabilities: This agreement will strengthen KPIT's near-shore presence which is essential to service German and European customers.
Commenting on the acquisition, Kishor Patil, MD & CEO, KPIT Cummins said that "Vehicle diagnostics are very high on automotive OEMs priority worldwide and we will now leverage the technology developed by In2Soft to service automotive OEMs across US and emerging markets in addition to Europe. With In2Soft we will build a local onsite and near-shore presence which is essential for key German customers. We expect a very profitable synergy with In2Soft and welcome the In2Soft team to the KPIT family."
"We are very happy to join KPIT Cummins which is very sharply focused on the automotive industry. KPIT's larger geographic presence across US, Europe and APAC will complement our strong relationships in the German automotive industry. We are confident that our combined and complementary strengths will help us create a leadership position in the diagnostics & telematics space and accelerate growth by creating more value for our customers." Guven Kivran, Managing Director, In2Soft.
Notes for the Editor:
- MVCI : Modular Vehicle Communication Interface
- ODX : Open Diagnostic Data Exchange
- OTX : Open Test sequence eXchange format
- D-PDU API : Diagnostic Protocol Data Unit Application Programming Interface
- DoIP : Diagnostics Over Internet Protocol
- WWH-OBD : World Wide Harmonised On-Board-Diagnostic
About KPIT Cummins
KPIT Cummins Infosystems Limited (BSE: 532400; NSE: KPIT), a trusted global IT Consulting and product engineering partner, is focused on co-innovating domain intensive technology solutions for Manufacturing corporations (with special focus on Automotive, Hi-Tech & Industrials verticals) to help its customers become efficient, integrated and innovative enterprises. A leader in technology solutions and services, KPIT Cummins currently partners with 100+ global Manufacturing corporations including 50+ Original Equipment Manufacturers (OEMs), semiconductor companies and Tier 1s, helping them globalize efficiently & bring complex technology products/ systems faster to their global markets.
Please visit www.kpitcummins.com for more information.
Forward Looking Statements
Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
