KPIT Cummins acquires US-based Sparta for $38 mn

MUMBAI: KPIT Cummins Infosystems Ltd has entered into a definitive merger agreement with Sparta Consulting, a US-based firm providing high end SAP solutions. The all-cash agreement is for a milestone based consideration of $38 million which includes a bonus of $4 million.

The merger of Sparta Consulting will further strengthen KPIT���s business model to focus on select industries and achieve market leadership by creating best in class practices/offerings that help customers achieve their operational a strategic objectives.

The acquisition is expected to result in greater efficiencies and increased market share.

Highlights:

��� With over 1,000 consultants in the combined entity, the SAP-led consulting practice provides a scalable alternative to Tier I companies which usually pursue larger ($25 million) multi- service opportunities. With global demand for SAP based services growing at 24+%, the SAP led consulting practice has the potential to grow into a $100 plus million business in next 3 years.

��� Will reinforce current SAP strengths of KPIT and the strategy to create a best in class SAP practice. Sparta���s dynamic team and proprietary templates/methodologies reinforces KPIT���s current strengths in value added SAP solutions to Automotive, Hi-Tech and Industrials sectors.

��� Sparta���s footprint in the energy and utilities sector would provide KPIT a headstart into this adjacent space.