To improve its skills in the software-defined vehicles market, KPIT Technologies announced that it was purchasing Technica Engineering, which has its headquarters in Munich.

KPIT will pay €80 million and a variable consideration of up to €30 million based on the achievement of revenue and profit milestones to be payable over the next two and a half years.

Technica specialises in production-ready system prototyping and automotive ethernet products, and tools for validation. This will create across-the-stack expertise offering a one-stop shop for the industry to transform towards SDV, said the company.

"Mobility industry is using software to drive innovation and is creating a post-vehicle sale business model driven by delivering services to end consumers. We are constantly looking for possibilities to help accelerate our client's vision. With Technica Engineering, we will strengthen value and scale of operations across the stack. We have common strategic clients who will benefit, and we also get access to leading disruptor mobility tech companies." Said Kishor Patil, CEO and MD of KPIT Technologies.

Technica Engineering is headquartered in Munich and has a presence in Spain, Tunisia, and the USA, with a team of over 600 engineers. The acquisition will cover four different entities in Germany, Spain and the USA. Annual consolidated revenues of Technica are in the range of €43 million at 20% EBITDA range.

"For the last 14 years, Technica has built a team passionate about cutting-edge tech in network architecture and system prototyping. We are confident that together we will play a key role in shaping the future of the mobility industry." said Joseba Rodriguez Martinez, CEO of Technica Engineering.

KPIT works with global automotive and mobility companies and is working closely in the software defined vehicles space. The company has engineering centres in Europe, the USA, Japan, China, Thailand, and India.

SDV demands a significant change in the electronics architecture moving from distributed low-compute devices to central-high-compute.

"Rapid prototyping of high-compute hardware and vehicle architecture is critical to validate changes in architecture as the industry makes this transition. Together we will offer a one-stop shop for the industry to migrate rapidly towards SDV by speeding up prototyping and software access and reducing workflow complexities for clients,." said Anup Sable, CTO at KPIT Technologies.