Mobility solutions company KPIT Technologies on Wednesday said it will acquire a 100% stake in Israel-based automotive cybersecurity firm Cymotive Technologies for a total consideration of up to $120 million (about ₹1,138 crore).
The acquisition will be executed in multiple tranches, starting with an initial investment of $10 million in preference capital, which is expected to be closed by mid-June 2026, the company said in a regulatory filing.
"If the preference capital is converted into equity, then the total consideration for the acquisition of a 100% stake would happen in 2 tranches and is dependent upon the actual revenue and EBIT numbers achieved by Cymotive. Currently, the total consideration payable by KPIT is expected to be between $60 million and $120 million (including the upfront $10 million)," KPIT said.
1 May 2026
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This initial investment will convert into a 26% equity stake based on the achievement of certain performance milestones within eight quarters. Following the conversion, KPIT plans to acquire the remaining stake in two further tranches to own 100% of Cymotive by mid-2029.
Headquartered in Tel Aviv, Cymotive was founded jointly by senior Israeli cybersecurity leaders and CARIAD, the automotive software company of the Volkswagen Group. The firm specialises in end-to-end vehicle lifecycle cybersecurity, spanning secure architecture, threat modelling, intrusion detection, continuous monitoring, and regulatory / homologation compliance.
Cymotive reported a turnover of $19.2 million in CY2025, down from $32.7 million in CY2024 and $42.4 million in CY2023.
"It (the acquisition) strengthens KPIT's capabilities in automotive cybersecurity-a critical and natural extension of its core SOV, embedded, and systems engineering business - while enhancing its value proposition to global OEMs, enabling them to adopt an integrated approach, embedding cybersecurity into vehicle platforms from design through production and operations," KPIT said.
This investment will start adding to product- and licensing-led revenue streams, in addition to KPIT's established engineering engagements, the Pune-headquartered firm added.
KPIT Technologies on Wednesday reported a 33.3% decline in consolidated net profit (attributable to owners of the company) to ₹163 crore in the January-March quarter of FY26.
The company's revenue from operations for the quarter under review came in 11.9% higher at ₹1,711 crore, as compared to ₹1,528.3 crore in the same period of the last fiscal year.
