KPIT Cummins Infosystems,a global IT consulting and product engineering partner to manufacturing corporations announced it has entered into a definitive agreement to acquire US based CPG Solutions,a provider of premium Oracle Consulting services to manufacturing & supply chain companies. The agreement is for a total consideration of INR 60 Crores which includes a guaranteed consideration of INR 27 Crores and a milestone based consideration of INR 33 Crores,the payment would be made over a period of 3 years. Strategic Rationale KPIT Cummins is highly focused on the Manufacturing and Energy & Utilities industries,which account for 85% of the Companys revenues. Rendering a full range of services to these industries is our primary strategic rationale. We are experiencing a rapid growth in demand for enterprise applications on ERP,Supply Chain Management,Product Lifecycle Management (PLM) and Customer Relationship Management (CRM) by these industries and Oracle is a major underlying platform in this space. CPG Solutions,an Oracle Gold Partner,is a focused player in solutions for the companies in Manufacturing,Supply Chain and Engineering space with over a decade of specialized consulting experience in this focused area. The acquisition of CPG Solutions will further strengthen KPITs strategic position as preferred Oracle partner for manufacturing companies and is designed to complement KPITs strengths in global ERP roll-outs,implementation and support & maintenance services.
