6 March 2006
Mid-size IT services company KPIT Cummins is acquiring the entire stake of Bangalore- based CG-Smith Software Private Limited. The deal has been concluded at Rs38 crore, of which Rs35 crore would be paid upfront and the balance after six months based on certain conditions. CG-Smith focuses on software solutions and services for automotive electronics and embedded systems for global auto manufacturers and large auto ancillary companies in North America, Europe and Japan. CG-Smith is an SEI CMM Level 5 company. KPIT Cummins was formed by the merger of KPIT Infosystems and Cummins Infotech in 2002. The company focuses on domains such as advanced technology solutions, diversified financial services and manufacturing. KPIT Cummins reported a net profit of Rs6.42 crore or Rs4.46 per share for the quarter ended December 2005 as compared to Rs6.21 crore or Rs4.31 per share for the September 2005 quarter. Total revenues increased to Rs69.8 crore for the quarter as against Rs64.48 crore for the previous quarter. KPIT is targeting revenues of $100 million for the next financial year 2006-07 and $225 million by FY 08-09. Promoters, excluding the Cummins group, held a 27.23 per cent stake in the company as on 31 December 2005. Cummins Inc of US held 6.79 per cent and Cummins India held 7.07 per cent as on that date. FII's held 17 per cent as of 31 December 2005 while domestic institutions held 11.5 per cent. The stock is trading at Rs375 (up3.53 per cent) on the BSE at 12.07 PM today.
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