HCL Tech to acquire Sankalp Semiconductor in Rs 180 cr all-cash deal; acquisition to help IT firm expand to newer markets

New Delhi: IT services major HCL Technologies on Monday said it will acquire Sankalp Semiconductor, an advanced technology design services provider, for Rs 180 crore.

This strategic acquisition would enable HCL to further expand into newer market-domains, especially in analog and mixed-signal design, a statement said.

Sankalp provides end-to-end solutions in automotive, consumer, lnternet of Things (IoT), medical electronics, networking and wireless domains.

Set up in 2005, the company’s revenue stood at Rs 141.2 crore in 2018-19. It has business operations in India, the US, Canada and Germany.

“Sankalp’s capabilities, combined with HCL’s existing strengths, will help HCL sustain its leadership position in the semiconductor space within the engineering and R&D services industry,” it said.

As per a regulatory filing, the all-cash deal is worth Rs 180 crore and is expected to close in the first week of October.

“Sankalp will complement our strong semiconductor offerings and help offer a wider range of services to our customers in the analog and mixed signal space,” HCL Technologies President (Engineering and R&D Services) GH Rao said.

Sankalp will operate as a 100 percent subsidiary of HCL, he added.

“The strategic acquisition will enable synergies between engineering teams, allowing us to offer broader semiconductor know-how to a wider variety of customers. The joined forces will enable deeper engagements with customers in the end-to-end digital and mixed-signal design space,” Sankalp Semiconductor CEO Samir Patel said.