KPIT Technologies , a global technology company specializing in software solutions for the automotive and mobility industry, has completed a strategic $10 million investment in Helm.ai, a company at the forefront of artificial intelligence for autonomous driving systems.

Investment Details

KPIT Technologies has finalized its investment of $10 million in Helm.ai through a SAFE (Simple Agreement for Future Equity) instrument. This investment was made via KPIT's wholly-owned subsidiary in the USA, as confirmed in a regulatory filing to the stock exchanges.

Strategic Implications

The investment represents a significant move by KPIT Technologies into the artificial intelligence sector, particularly in the realm of autonomous driving technology. Helm.ai is known for developing advanced AI software for self-driving cars, with a focus on making autonomous driving safe, scalable, and cost-effective.

Terms of the Agreement

According to the company's disclosure:

• The $10 million subscription amount has been paid towards the SAFE instrument.
• This instrument grants KPIT the right to certain shares of Helm.ai's Capital Stock (Safe Preferred Stock) based on future events such as equity financing, IPO, or direct listing.
• The investment will not result in Helm.ai becoming a subsidiary of KPIT Technologies.
• KPIT will not have any participative rights in Helm.ai as a result of this investment.

Industry Context

This strategic investment aligns with the growing trend of automotive technology companies investing in AI and autonomous driving capabilities. It potentially positions KPIT Technologies to enhance its offerings in the rapidly evolving autonomous vehicle market.

Company Statement

Ashish Malhotra, General Counsel & Company Secretary of KPIT Technologies, confirmed the completion of the investment, stating that all synergy parameters and conditions precedent have been satisfied before the payment was made.

The move underscores KPIT Technologies' commitment to advancing its position in the automotive technology space, particularly in the high-growth area of artificial intelligence for autonomous driving systems.

KPIT Technologies Limited , a global technology company specializing in software solutions for the automotive and mobility industry, has successfully completed its acquisition of Caresoft, a move that strengthens its position in the automotive engineering and design space.

Revised Deal Terms

The acquisition, initially announced with a consideration of up to $191.00 million, has been finalized at a revised total of up to $157.00 million. This adjustment reflects changes in the macro business environment and renegotiations between the parties involved.

Transaction Details

• KPIT made an initial payment of $51.00 million to acquire 100% equity shares in Caresoft's entities across the United States, United Kingdom, and Mexico.
• The deal structure includes a variable pay component of $15.00 million, contingent on achieving revenue and business synergy milestones.
• Prior to the completion, KPIT infused significant capital into its subsidiaries to facilitate the transaction:
  • €28.00 million into KPIT Technologies (UK) Limited
  • $28.00 million into KPIT Technologies Holding Inc, USA

Entities Acquired

The acquisition encompasses the following Caresoft entities:

1. Caresoft Global Technologies, Inc. USA
2. Caresoft Engineering Services Limited, UK
3. CAREGLOTECH de RL de CV Mexico

Strategic Implications

This acquisition is expected to enhance KPIT's capabilities in automotive engineering and design services. By integrating Caresoft's expertise, KPIT aims to strengthen its position in the global automotive technology market and expand its service offerings to clients worldwide.

Regulatory Compliance

KPIT Technologies has duly informed the stock exchanges about the completion of this acquisition, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's proactive disclosure demonstrates its commitment to transparency and corporate governance.

Conclusion

The successful completion of this acquisition marks a significant milestone for KPIT Technologies. As the automotive industry continues to evolve with emerging technologies, this strategic move is likely to bolster KPIT's ability to deliver innovative solutions to its global clientele in the automotive and mobility sectors.