Software services firm HCL Technologies Ltd has agreed to acquire advanced technology design services provider Sankalp Semiconductor Pvt. Ltd (SSPL) for Rs 180 crore ($25.06 million at current exchange rates) in cash.
HCL said in a stock-exchange filing the move would help combine the company’s design capabilities with its system-on-a-chip (SoC) expertise to gain market share in the very large-scale integration (VLSI) design services market.
The Noida-based firm said it expects the acquisition to be completed by the first week of October, it added.
GH Rao, president for engineering and research and development services at SSPL, said the firm will operate as a 100% subsidiary of HCL. “Sankalp will complement our strong semiconductor offerings and help offer a wider range of services to our customers in the analog and mixed signal space,” Rao said.
Separately, Samir Patel, chief executive officer at SSPL, said the move would help the two companies to have a deeper integration to their customers including broader semiconductor know-how and other synergies.
Sankalp, which was incorporated in 2005, has business operations in India, USA, Canada and Germany. The company offers concept-to-prototype solutions in the semiconductor segment along with an integrated portfolio of services in domains such as digital, analogue and high speed physical interface intellectual property.
Its clients include various companies in sectors such as automobiles, consumer electronics, industrial internet-of-things and medical electronics. The company reported revenues of Rs 141.2 crore for the 2019 financial year.
HCL has been one of the most prolific acquirers among India's IT services companies. It has struck almost a dozen deals in India and overseas since 2015, according to VCCEdge, the data research arm of Mosaic Digital.
Last month, it picked up a 6.64% stake in the London-headquartered artificial intelligence-enabled business networking app Kalido for $2 million (around Rs 14 crore). The company said the investment will boost its network capabilities, improve customer features and enhance its digital workplace solutions.
Earlier in March, HCL agreed to acquire US-based Strong-Bridge Envision to enhance its digital transformation consulting capabilities.
In December 2018, the Indian IT firm sealed one of the biggest deals by agreeing to buy some of the software businesses from IBM Corp for $1.8 billion.
The company made three other acquisitions last year. It agreed to acquire Germany's H&D International Group for around $35 million, life sciences and consumer services provider C3i Solutions from US drugmaker Merck & Co. for $60 million and US-based Actian Corporation for $330 million.