SemIndia has acquired Bangalore-based fabless semiconductor company Exalted Networks in an $8 mn cash and stock deal. SemIndia is setting up a $3 bn silicon wafer fabrication unit. Exalted Networks has now been renamed as SemIndia Systems Private Limited, and has 100 engineers working for it. The company is expected to close the current financial year with a turnover of Rs. 100 crores. It has already started marketing third-party products with the SemIndia brand in the country. It has shipped out the first batch of ADSL modems made by co-investor Flextronics to BSNL.
SemIndia is close to closing two similar deals like Exalted. The target companies have not been named yet. It is also understood that AMD, which is till now a technology partner in the $3 bn wafer fabrication unit, will pick equity along with the government. It is also scouting for ATMP units in Thailand, Malaysia, Singapore and Taiwan. These acquisitions will be in the range of $100-200 mn and there could be at least three such deals. Additionally, it has also initiated talks with global private equity funds to raise the money for acquisition of Assembly, Testing, Marking and Packaging (ATMP) plants and fab units across the world. The local fab units will cater to the domestic market, while the overseas fab units, which could be ultimately shifted to India, would initially cater to customers abroad. SemIndia may not buy old fab units and will focus only on acquiring new equipment.
The SemIndia consortium has been promoted by former McGill University don Vinod Agarwal, the world’s second largest chip-maker AMD, fabless ASIC semiconductor design and manufacturing giant Flextronics, private equity fund Sandalwood Partners and others.
Read the article in DNA Money.
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