Sasken Technologies Limited, a global leader in product engineering and digital transformation services, has announced the acquisition of Borqs Technologies Inc.’s hardware and software services business. Borqs, a prominent provider of embedded software and IoT products, will transfer 100% of the share capital of BORQS International Holding Corp and Borqs Technologies India Private Limited to Sasken, either directly or through Sasken’s subsidiaries. This acquisition includes identified wholly-owned subsidiaries of BORQS International Holding Corp.
Acquisition Goals and Strategic Impact:
The acquisition aligns with Sasken’s 60x4x3 strategy, aimed at enhancing its service offerings and expanding its reach in the high-growth IoT and 5G markets. Through this acquisition, Sasken aims to:
- Support customers in developing, launching, and commercializing IoT-enabled connected devices.
- Strengthen its portfolio and competitiveness in IoT, 5G, and other advanced technology domains.
- Drive growth by generating nonlinear revenues and enhancing service capabilities.
Key Acquisition Details:
- Target Entities: BORQS International Holding Corp (with specific wholly-owned subsidiaries) and Borqs Technologies India Private Limited.
- Transaction Type: All-cash transaction with a total consideration capped at US$40 million (approximately Rs. 338 crores), including performance-linked earn-outs.
- Completion Timeline: Expected by March 31, 2025.
- Approval Requirements: No regulatory or governmental approvals required.
- Borqs’ Business Scope: The Target Entities specialize in end-to-end IoT solutions, encompassing device design, implementation, cloud integration, and supply chain management for industries like utilities, automotive, and smart cities.
- Known for expertise in wireless product solutions for telecom and IoT, Borqs has strategic partnerships with Qualcomm and serves key mobile operators and OEMs.
- Borqs’ IoT and 5G capabilities position it well to meet the rising demand for connected solutions.
Synergies and Innovation Potential:
Sasken and Borqs anticipate robust synergies, combining complementary strengths to create a powerful innovation platform in IoT and 5G technologies.
Target Entities Background:
BORQS International Holding Corp: Incorporated on July 27, 2007, and registered in the Cayman Islands.
Borqs Technologies India Private Limited: Incorporated on July 23, 2009, CIN: U72200KA2009PTC050460.
Recent Financials (in thousands of $):
- FY2023 – US $32,046
- FY2022 – US $52,537
- FY2021 – US $29,561
Geographic Presence:
The Target Entities operate in India, Hong Kong, and the People’s Republic of China.
