 "Hyderabad-based MosChip acquires three firms")
The company did not disclose the exact investment in acquiring these three firms but said that to fund the acquisitions and additional working capital requirements, MosChip obtained Board approval to raise an additional Rs 41.25 crore (approximately $6.15 million) by issuing shares and warrants to Techwave Pte. Ltd.
MosChip has made the acquisitions as part of the company's growth plans in the Internet of Things (IoT) area and semiconductor industry as well as to expand client base in North America, EU, and APAC regions.
The acquisitions of elitePLUS Semiconductor Technologies and Orange Semiconductor will strengthen MosChip's end-to-end capabilities in VLSI services by adding more than 75 experienced resources in Bangalore. Maven Systems has several products and service offerings in M2M, IoT domains of remote monitoring, smart lighting, smart metering, smart cities and analytics with clients in more than 20 countries. Maven Systems is part of the growth strategy to allow MosChip to be a leading player in the IoT area.
The three acquisitions will help MosChip to increase the company's global headcount to more than 250 experienced engineers across Hyderabad, Bangalore, and Pune in India; London; and Silicon Valley. MosChip also plans to add another 150-200 engineers across all locations.
Ram Reddy, CEO of MosChip, said: "The investment by Techwave, coupled with recent strategic actions, already are showing positive results. MosChip showed significant financial turnaround in the first quarter of the company's 2016-17 fiscal year."
MosChip's focus areas include solutions in IoT, investing in development of IP, and expanding VLSI services globally.
