Sasken Technologies acquires Borqs’ IoT business for $40Mn
HONG KONG, CHINA — In a strategic move to strengthen its IoT capabilities, India-based Sasken Technologies Limited has announced plans to acquire the original design manufacturing (ODM) and software services division of Borqs Technologies.
Strategic impact and market expansion
The acquisition, valued at up to USD $40 million, aims to enhance Sasken’s capabilities in designing, developing, and commercializing connected devices, including mobile phones, tablets, smartwatches, and other IoT products.
This move also aligns with Sasken’s 60x4x3 growth strategy, positioning the company to offer comprehensive end-to-end solutions in the connected devices market.
“This acquisition reflects our commitment to expanding our technological footprint and delivering advanced solutions to meet the evolving demands of our customers,” said Rajiv Mody, Chairman, Managing Director & CEO, Sasken.
“By integrating Borqs’ capabilities, we will strengthen our portfolio, improve our competitiveness, enable nonlinear revenues, and drive future growth in high-demand markets like IoT and 5G.”
Sasken Technologies, a 30-year veteran in product engineering with multiple patents, has been powering over a billion devices worldwide through its services to Fortune 500 companies.
Enhanced capabilities
The merger, expected to conclude by the end of 2024, combines Sasken’s expertise in chip-to-cognition R&D services with Borqs’ established reputation in wireless product solutions. Borqs Technologies, founded in 2007, brings to the table its strategic alliances with industry leaders like Qualcomm and a workforce of approximately 300 employees across multiple continents.
The combined entity will continue serving global clients across sectors such as telecommunications, healthcare, and smart cities, leveraging their enhanced capabilities in product development and digital transformation.
Details of the deal and future collaboration
The agreement allows Sasken to assume control over Borqs’ ODM and software services business without taking on any associated liabilities. Performance-linked earnouts, management incentives, and other payouts form part of the total transaction consideration, not exceeding USD $40 million.
According to Pat Chan, CEO of Borqs, “After the strategic alliance with Sasken, Borqs intends to use the proceeds to develop next-generation AI and blockchain software and services.” The two companies plan to continue collaborating and leveraging Sasken’s silicon design capabilities to create AI-oriented products.
