L&T Semiconductor Technologies to Acquire SiliConch Systems for Rs 183 Crore
Larsen & Toubro, the Indian conglomerate, announced that its subsidiary, L&T Semiconductor Technologies, is going to purchase one of the leading fabless semiconductor design companies, SiliConch Systems, for Rs 183 crore. This strategic acquisition includes an up-front payment of Rs 133 crore, further supplemented by a deferred amount of Rs 50 crore spread over four years.
L&T, in its regulatory filing, stated, "LTSCT has executed a definitive agreement to acquire a 100 percent equity stake in SiliConch Systems Private Limited". This transaction will substantially strengthen the capabilities of LTSCT by induction of IP, their pool of engineering talent, and design expertise into its fold. This acquisition is aligned with the broader growth strategy of LTSCT to strengthen its foothold in the competitive fabless semiconductor market place.
The transaction is expected to close by September 15, subject to customary closing conditions. SiliConch Systems, based and with 61 employees, focuses on System-on-Chip IP solutions development and has a portfolio of 30 granted patents across various global markets.
Through this acquisition, LTSCT proposes to integrate SiliConch's technological strengths embraced in the position of semiconductor innovation, to drive future chip design and development through synergies.
This acquisition thus reaffirms L&T's commitment to increasing participation in high-growth segments and underlines its strategic intent to strengthen technology capabilities in the semiconductor space.
