Infosys Ltd, India's second-largest IT services exporter, has agreed to acquire Bengaluru-based semiconductor design firm InSemi in an all-cash deal worth Rs 280 crore ($33.7 million).
The payout will include earn-outs, management, incentives and retention bonus, Infosys said in an exchange filing. It expects the deal to complete during the current quarter.
“InSemi is a strategic investment as we usher a next wave of growth and a leadership position in Engineering R&D,” said Dinesh R, EVP & head- co-delivery, Infosys.
The deal will help Infosys improve its engineering capabilities at a time when semiconductors are driving the growth of artificial Intelligence (AI), 5G, hyperconnectivity, high performance computing, quantum technology, virtual reality, IoT and smart devices.
“This collaboration will help accelerate Infosys’ chip-to-cloud strategy by bringing niche design skills at scale and will also pair with existing investments in AI/automation platforms and industry partnerships,” the company said.
Founded in 2013, InSemi offers end-to-end semiconductor design services including electronic and platform design, automation, embedded and software technologies.
“With Infosys as our catalyst, it creates a synergistic combination that allows us to scale and bring the power of AI & engineering R&D to global clients, expanding across industry sectors,” said Shreekanth Sampigethaya & Arup Dash, co-founders of InSemi.
“We aim to further accelerate our progress and together with Infosys, it paves a path of innovation opening new opportunities for our teams.”
The company reported revenue of Rs 153.6 crore in FY23, growing 40% from the year before.
Shares of Infosys ended Thursday's trading session down 1.6% at Rs 1,495 apiece on the BSE.
