The Hindu Business Line : KPIT Cummins Info buys US co Sparta for $38 m

Mumbai, Oct. 30 Mid-size IT solutions firm KPIT Cummins Infosystems said on Friday it has acquired the US-based SAP solutions provider Sparta Consulting Inc for $38 million (Rs 186 crore).

The Sparta acquisition gives KPIT an entry into the energy and utilities sector; it also enables the Pune-based company to pursue IT deals worth over $25 million as the merged entity would have more than 1,000 SAP consultants.

SAP implementation is the process or method of implementing SAP’s Enterprise Resource Planning software in an organisation.

Sparta Consulting is one of North America’s fastest growing SAP specialists, according to a press release from KPIT.

With this acquisition, KPIT expects its SAP consulting practice to grow into a business worth over $100 million in the next three years, it said.

The combined entity will have more than 1,000 consultants thereby enabling it to pursue IT outsourcing deals larger than $25 million. The transaction is now subject to regulatory clearances.

Net up 26%

For the quarter ended September 2009, KPIT reported a net profit of Rs 21.1 crore, up 26 per cent from Rs 16.8 crore in the corresponding quarter a year ago.

However, net sales were down 12 per cent to Rs 177 crore (Rs 201 crore).

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More Stories on : Mergers & Acquisitions | Software

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