MosChip, a leading Semiconductor and Embedded design services and solutions provider, announced today that it has signed a “Share Purchase Agreement” to acquire SoftnauticsInc, a California-based company specialising in Product Engineering Solutions in Embedded, FPGA, and VLSI. Softnautics maintains offices in both California and India (Pune and Ahmadabad). Softnautics brings a highly complementary set of engineering skills, customers, markets, and world-class talent, as well as leadership. Softnautics has strong customer relationships with top-tier companies throughout North America and will add 185+ employees to the current MosChip talent pool across multiple domains.
This acquisition will also broaden our geographical presence, with offices in Hyderabad, Bangalore, Pune, and Ahmadabad, as well as bolstering our presence in North America, resulting in greater access to a talent pool. The acquisition, which is expected to close in the next quarter, is expected to be EBIDTA accretive and generate free cash flow from the start. The total acquisition cost is USD 17.25 million, with 52.6% paid in Swap Shares and 47.4% paid in cash over time.
In response to the acquisition, MosChip’s MD and CEO stated, “This transaction will strengthen MosChip’s Embedded System Design capabilities, allowing us to better serve our existing clients while increasing our ability to acquire new customers.” “I believe that the collaboration between Softnautics and MosChip is a great value for our existing and potential customers,” said Rajesh Shah, CEO of Softnautics Inc. “The journey together has begun, and we are excited to collaborate to make MosChip a stronger company. With over 1100 engineers, MosChip enables new offerings for our customers as well as new opportunities for our employees. We can provide a much more comprehensive set of services to customers by leveraging MosChip’s excellent track record in Semiconductor product design “Rajesh stated.