SME Times News Bureau | 31 Jan, 2018
CK Birla Group's Birlasoft
and KPIT will merge to create a $700 million company, which will
later demerge into two separate IT entities focused on "digital
business IT services" and "automotive engineering and
mobility solutions".
A statement released late on
Monday said the new "Birlasoft" -- one of the two
specialised companies that will be created at the conclusion of the
deal -- would be a $500 million digital business IT services
company.
It said the new Birlasoft will be created by
merging the KPIT ITSS (information technologies solutions and
services) business with the current Birlasoft and will be led by
Anjan Lahiri as the CEO and MD.
According to the
statement, the new "KPIT Technologies" will be a $200
million focused engineering services company that will be created by
tapping into the current engineering business of KPIT to create a
global leader in automotive engineering and mobility solutions, and
will be led by Kishor Patil as the CEO and MD.
"This
company will deepen the relationship with global automotive and
mobility leaders in fulfilling their engineering needs.
"The
company will continue to enhance its expertise in all the features to
deliver cleaner, safer and smarter solutions to the world of
automotive and mobility," it said.
The statement said
during the period prior to the completion of the deal, Birlasoft and
KPIT will continue to be run by their current managements, in
addition to which management from both the companies will work
together to familiarise Birlasoft with the ITSS business.
"With
this, Birlasoft will expand its industry leading capability in
enterprise solutions with unmatched digital capability.
"We
will become the leading 'enterprise digital' company in the country
that will advise its customers in unlocking value in their digital
journey," said Amita Birla, Chairman of Birlasoft.
Ravi
Pandit, Chairman of KPIT, said: "We will be focused on building
the KPIT brand as the foremost organisation in the world for
automotive engineering and mobility solutions...
"While
transitioning the "Business IT services" business to
Birlasoft in the next year, our team will continue to work with
Birlasoft to ensure the best service to the KPIT Business IT
customers."