Larsen & Toubro Limited (L&T) has announced that its subsidiary, L&T Semiconductor Technologies Limited, will acquire a 100% stake in SiliConch Systems Private Limited.

What Happened: The Share Purchase Agreement was signed on July 8, 2024, as per the disclosure made with the exchanges. The acquisition is set to enhance the group's presence in the fabless semiconductor business by adding IP, engineering skillsets, and design expertise. This aligns with the overall growth strategy of LTSCT, according to the company’s announcement.

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The acquisition is expected to be completed by September 15, 2024, subject to customary closing conditions. The deal involves a cash consideration, with an upfront amount of ₹133 crore payable at closing, subject to customary closing adjustments, and a deferred amount of ₹50 Cr payable over 4 years, subject to closing adjustments and achievement of certain targets and other conditions.

SiliConch Systems, established in April 2016, specializes in the development and design of semiconductor Intellectual Property (IP) / Integrated Circuits (IC). The company has 30 granted patents across geographies and generates revenue primarily as non-recurring engineering (NRE) revenue and license fees. The company’s end customers are OEMs and/or fabless IC companies, primarily in the U.S., who provide power management systems for smartphones, PCs, automotive, IoT and accessories. In the year ended March 2024, the company’s revenue was around ₹27.68 crore.

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