New York-listed Arrow Electronics, Inc. has entered into a definitive agreement to acquire product engineering company eInfochips Ltd, the two companies said on Tuesday.
The companies didn’t disclose the deal value. However, The Economic Times said, citing sources it didn’t identify, that the deal value was close to Rs 1,800 crore.
Ahmedabad- and California-based eInfochips said in a statement it will expand Arrow’s Internet of Things (IoT) platform by adding engineering, solution architecture, embedded software development, security and other features.
After the acquisition, which is likely to close this month, eInfochips will act as a fully owned subsidiary of Arrow Electronics.
“Upon close of this acquisition, eInfochips advances our IoT strategy, expands our offerings, and moves us into the rapidly growing IoT services market. This acquisition adds over 1,500 IoT solution architects, engineers, and software development resources to Arrow's already leading position in IoT design services,” said Michael J. Long, chairman and chief executive officer at Arrow.
Pratul Shroff, CEO at eInfochips, said the deal will allow the company to leverage synergies between its engineering capabilities and digital offerings with Arrow’s electronics and enterprise products and solutions, and digital operations, including in IoT.
Founded in 1994, eInfochips works in the areas of product engineering, device lifecycle management, IoT and cloud frameworks, intelligent automation and video management. It posted consolidated revenue of Rs 457 crore and a net profit of Rs 109.9 crore for the year through March 2016, according to VCCEdge, the data research platform of News Corp VCCircle.
Arrow Electronics provides products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.
Avendus Capital was the adviser to eInfochips for this transaction.