- Tejas Networks would acquire 64.40 % stake in Saankhya Labs
- Sankhya has a patent portfolio of 73 patents
- Tejas Network will be able to expand its customer base in India and internationally as a result of the acquisition
Tejas Networks, a Tata Group company, would pay Rs 283.94 crore for a 64.40 percent ownership in Saankhya Labs Pvt Ltd, which is in semiconductor and wireless technology business. Tejas stated in a statement that the initial acquisition of Saankhya shares is likely to close within the next 90 days.
Tejas Network will benefit from the acquisition of Sankhya by obtaining access to world-class products and solutions backed by cutting-edge technology for serving consumers in the domestic and international markets. Sankhya has a patent portfolio of 73 patents (41 granted, 32 pending), as well as hardware and software design. The addition of 5G O-RAN, 5G Cellular Broadcast, Wireless services and Satellite communication products will enhance the existing product basket of Tejas Networks, by the acquisition of Saankhya.
The promoter of Tejas Group Firm does not have any interest in Saankhya and hence transaction does not fall within the purview of related party transactions.
Tejas Networks will be able to designate majority directors to the Saankhya Board of Directors under the conditions of the acquisition, as long as it owns at least 50% of the company’s stock or is the single largest shareholder. Under the direction of the Board, Saankhya’s management team will oversee the company’s day-to-day operations. Saankhya’s Board of Directors will appoint one of the Company’s nomination Directors to serve as chairman.
Saankhya was incorporated in 2006. It made a consolidated revenue of Rs. 73.22 crore in the nine months ended December 31, 2021. Regulatory approvals will be required for the transaction. If the merger transaction is not completed, Tejas Network will buy the remaining 35.60 percent of Saankhya’s shares from its existing owners in a secondary acquisition, making Saankhya a completely owned subsidiary of the Company.
Tata Group has already stated its intention to enter the semiconductor industry. The company is in talks with a number of states about investing up to $300 million in a semiconductor assembly and testing facility.
On the Software side Tata Elxsi is working in the Semiconductor space. Artificial intelligence, machine learning, and natural language processing (NLP) are driving growth in the semiconductor and electronic device markets. At this juncture of technological innovation and convergence, companies have realised value from software and services linked with chipsets that enable OEMs to swiftly adopt hardware platforms. The AI chipset industry is rising, thanks to applications and related technology stacks that are promoting greater acceptance and a faster development cycle.
Tejas Network will be able to expand its customer base in India and internationally as a result of the acquisition, as well as bring in-house fabless semiconductor chip design capabilities for specialised applications. Saankhya has approximately 250 engineers with world-class competence in wireless communication, software, algorithms, and fabless chip design, which will help Tejas Network speed up the development of its wireless products.
Staff Galactik Views