KPIT Cummins acquires US based CPG Solutions

PUNE, INDIA: KPIT Cummins Infosystems Ltd today announced it has entered into a definitive agreement to acquire U.S. based CPG Solutions, a provider of premium Oracle Consulting services to manufacturing and supply chain companies.

The agreement is for a total consideration of Rs. 60 crore which includes a guaranteed consideration of Rs. 27 crore and a milestone based consideration of Rs. 33 crore, the payment would be made over a period of three years, said a press release.

The acquisition of CPG Solutions will further strengthen KPIT’s strategic position as preferred Oracle partner for manufacturing companies and is designed to complement KPIT’s strengths in global ERP roll-outs, implementation and support and maintenance services.

Kishor Patil, MD and CEO of KPIT Cummins said “In the next three years, we aim to build an Rs. 400 crores plus best in class Oracle consulting practice focused on the manufacturing, energy and utilities industry. In doing this, CPG solutions will play a pivotal role in establishing a strong presence in the U.S. market enabling us to offer value-added transformational oracle solutions to our manufacturing customers. We are very happy to welcome the CPG team into the KPIT Cummins family.”

Jim Daleen, CEO, CPG Solutions added: “Being part of KPIT Cummins family will enable CPG to provide global scale and proven off-shore services options to our customers. The combined services portfolio from both companies coupled with focus on our target industries puts us in the best possible position to enable Oracle customers to maximize value from their technology investments.”