Engineering services firm L&T Technology Services Ltd said on Thursday it has executed an agreement to acquire Bengaluru-based Graphene Semiconductor Services Pvt. Ltd for Rs 93 crore (about $12.9 million) in cash.
L&T Technology will make an upfront payment of Rs 70 crore for the chip design and embedded software services company. It will pay the remaining Rs 23 crore in the form of earn-outs and retention pay spread over three years.
The subsidiary of engineering giant Larsen & Toubro Ltd said the acquisition will strengthen its footprint in very large scale integration (VLSI) chip design and embedded software services. It will also enhance its capabilities in the semiconductor segment.
“Graphene’s strong offshore presence, coupled with expertise in complete VLSI chip design and embedded software, will be a force multiplier for L&T Technology Services,” said Keshab Panda, CEO and managing director at L&T Technology.
The transaction is likely to be completed by next month.
Graphene was incorporated in 2013 and has around 500 employees. Its revenue for the year ended March 2018 was Rs 66.3 crore, up from Rs 47.5 crore in the previous year.
L&T Technology focusses on engineering, and research and development services. The company went public in September 2016 with a Rs 890-crore initial public offering. As of June, L&T Technology had 13,000 employees spread across 16 global design centres, 27 global sales offices and 42 innovation labs.
The company’s consolidated revenue from operations stood at Rs 3,747.1 crore in the year ended March 2018, up from Rs 3,248.3 crore in the previous financial year.