MosChip, a leading Semiconductor & Embedded design services & Solutions company, announced that it has signed “Share Purchase Agreement” to acquire Softnautics Inc, a California based company with a focus on Product Engineering Solutions in Embedded, FPGA and VLSI. Softnautics has offices in California and India (Pune and Ahmadabad).
The acquisition of Softnautics brings highly complementary set of engineering skills, customers, markets & world-class talent along with leadership. Softnautics has established strong customer relationships with top-tier companies across North America and will add 185+ employees to current MosChip talent pool across various domains, the statement said.
This acquisition will also expand our geographical presence with office in Hyderabad, Bangalore, Pune, and Ahmadabad besides further augmenting presence in North America, which will result in broader access to talent pool, according to the statement.
The acquisition which will be completed during next quarter is expected to be EBIDTA accretive and generate free cash flow starting from very first year. The total cost of acquisition is USD 17.25 million to be paid 52.6% in Swap Shares and 47.4% in cash over a period.
Commenting on the acquisition, Venkata Sudhakar Simhadri , MD and CEO, MosChip, said that this transaction will strengthen MosChip’s Embedded System Design capabilities which will enable us to serve our existing clients better, while increasing our ability to acquire new customers.”
“I do believe that Softnautics and MosChip’s partnership is a great value for our existing and potential customers,” said Rajesh Shah, CEO, Softnautics Inc. “The joint journey starts now, and we are excited to work together to make MosChip a stronger company. MosChip with more than 1100+ engineers, enables new offerings to our customers, as well as new opportunities for our employees. Jointly, we can provide customers a much more comprehensive set of services while leveraging MosChip’s excellent track record in Semiconductor product design”, said Rajesh.
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