One of North America’s fastest growing SAP specialists, Sparta Consulting, to merge with KPIT Cummins
Combined practice to provide a credible alternative to Tier 1 suppliers in Enterprise consulting

PUNE (India), California (USA), October 30, 2009 – Sparta Consulting, a California, USA based firm and a leading provider of high end SAP solutions, is pleased to announce that they have entered into a definitive merger agreement with KPIT Cummins Infosystems Ltd (BSE: 532400; NSE: KPIT), a global IT consulting and engineering partner to manufacturing corporations.

Strategic Rationale
The merger of Sparta Consulting, based in Folsom, CA, USA, further strengthens KPIT’s business model to sharply focus on key industries and achieve market leadership by creating best in class practices/offerings that help customers achieve their operational & strategic objectives. Key Highlights:

• Accelerates Growth: With over 1000 consultants in the combined entity, the SAP-led consulting practice provides a scalable alternative to Tier 1 companies. With global demand for SAP based services growing at 24+%, the SAP led consulting practice has the potential to grow into a USD 100+ million business in next 3 years.
• Reinforces current SAP strengths of Sparta and KPIT and the strategy to create a best in class SAP practice. Sparta’s dynamic team and proprietary templates/methodologies reinforces KPIT’s current strengths in value added SAP solutions to Automotive, Hi-Tech and Industrials sectors.
• Provides a headstart into an adjacent vertical: Sparta’s footprint in the Energy & Utilities sector would provide KPIT a headstart into this adjacent space.

Impact of merger on Sparta Consulting

• Expand Vertical Reach: In addition to the existing verticals, Sparta Consulting will now also be able to address the growing SAP market in Automotive and Industrials (KPIT has 100+ customers in this space).
• Extend Global Presence: Sparta would be able to leverage KPIT’s global presence and effectively scale in regions such as Europe & Asia Pacific.
• Enhance and Continue Current Strategy: Sparta’s leadership team will run the combined SAP Practice.

Expressing his views on this occasion,Mr. Kishor Patil, Managing Director & CEO, KPIT Cummins, said “Sparta Consulting is an excellent strategic fit and growth accelerator to our focused business model. It has a very committed team with extensive experience in rapidly scaling up ERP consulting business and we see a large market opportunity in this area. We are particularly impressed with the excellent track record of the Sparta team. The team has created a SAP services business which has grown nearly 300% year-on-year under trying economic conditions. The same team has earlier successfully created and grown an Enterprise consulting business to over USD 250 million. We welcome this merger and look forward to jointly helping our customers achieve their post-downturn growth objectives”.

Paul Freudenberg and Lokesh Sikaria, the two key principals at Sparta Consulting, added: “We have found an excellent partner in KPIT Cummins and are very excited about joining a focused solutions leader. KPIT’s larger geographic presence specifically in Europe and Asia Pacific complement our strong relationships in the SAP ecosystem. We are confident that our combined and complementary strengths create a leadership position in the SAP centric solutions business. We see great synergy in market verticals and domain focus. In addition, the IT services capabilities of KPIT Cummins beyond SAP, makes it a perfect strategic fit to accelerate the growth of Sparta Consulting by creating even more value for customers.”

The transaction is subject to legal and other clearances.
About KPIT Cummins
KPIT Cummins Infosystems Limited (BSE: 532400; NSE: KPIT), a trusted global IT Consulting and product engineering partner, is focused on co-innovating domain intensive technology solutions for Manufacturing corporations (with special focus on Automotive, Hi-Tech & Industrials verticals) to help its customers become efficient, integrated and innovative enterprises. In the last 5 years, KPIT has grown its revenue and profits at an industry-leading CAGR of around 50%. A leader in technology solutions and services, KPIT Cummins currently partners with 100+ global Manufacturing corporations including 50+ Original Equipment Manufacturers (OEMs), semiconductor companies and Tier 1s, helping them globalize efficiently & bring complex technology products/ systems faster to their global markets. Please visit www.kpitcummins.com for more information.

About Sparta Consulting
Sparta is a leading full service SAP provider and one of the fastest growing SAP consultancies in North America. Sparta’s innovative thought leadership along with process and Industry knowledge helps accelerate SAP implementations. Coupled with managed services and offshore support from India, Sparta’s employees improve return on investment and provide support to many of the best run companies. Founded in 2007 by Paul Freudenberg and Lokesh Sikaria, Sparta is privately held with its ownership distributed across a large number of its employees. Please visit www.spartaconsulting.com for more information.