Engineering outsourcing company L&T Technology Services said it has agreed to acquire 100% of Bangalore-based semiconductor services firm Graphene for an undisclosed amount.
The all-cash transaction is expected to be complete by October, it said.
Graphene Semiconductor Services Private Limited is one of the fastest growing companies in the Semiconductor Services domain with a presence in India, Singapore, Taiwan, and Malaysia, according to the acquirer.
“Counting 10 of the world’s top semiconductor fabrication and fabless companies as its customers, Graphene provides end-to-end solutions— right from chip design, embedded software, all the way through providing support to mass manufacturing, thereby being a one-stop service and solution provider,” it said.
The acquired company had revenues of Rs 66.3 cr for the year ended March 31, 2018.
India is home to many chip design companies, even though the country is almost totally absent as far as semiconductor manufacturing is concerned. The design firms based in India help global giants optimize and create designs for their latest-generation chips.
“Graphene’s strong offshore presence, coupled with expertise in complete VLSI Chip Design & Embedded Software will be a force multiplier for LTTS and will enhance our capabilities in the Semiconductor & Product OEM space,” said Dr Keshab Panda, CEO & Managing Director, L&T Technology Services Limited.
The move will help L&T Tech Services compete better with local rivals like Tata Elxsi.
“Aligning with LTTS is the right decision to expand our global reach. We will now continue fulfilling our vision of enabling our customers realize products that attain market leadership positions in their respective markets,” said Vilas Bhade, Co-founder Graphene Semiconductor Services Private Limited.