MosChip To Acquire California-based Softnautics Inc For $17 Mn

Semiconductor company MosChip on Tuesday announced it has signed “Share Purchase Agreement” to acquire Softnautics Inc, a California based company with a focus on Product Engineering Solutions in Embedded, FPGA and VLSI.

The USD 17.25 million acquisition will be completed during next quarter and is expected to be EBIDTA accretive and generate free cash flow starting from very first year. The acquisition cost be paid 52.6 per cent in Swap Shares and 47.4 per cent in cash over a period.

“The acquisition of Softnautics brings highly complementary set of engineering skills, customers, markets & world-class talent along with leadership. Softnautics has established strong customer relationships with top-tier companies across North America and will add 185+ employees to current MosChip talent pool across various domains,” MosChip said in its release.

Softnautics has offices in California and India (Pune and Ahmadabad).

In a statement, Venkata Sudhakar Simhadri , MD and CEO, MosChip, said that this transaction will strengthen MosChip’s Embedded System Design capabilities which will enable us to serve our existing clients better, while increasing our ability to acquire new customers.

“I do believe that Softnautics and MosChip’s partnership is a great value for our existing and potential customers,” said Rajesh Shah, CEO, Softnautics Inc.

“The joint journey starts now, and we are excited to work together to make MosChip a stronger company. MosChip with more than 1100+ engineers, enables new offerings to our customers, as well as new opportunities for our employees. Jointly, we can provide customers a much more comprehensive set of services while leveraging MosChip’s excellent track record in Semiconductor product design,” said Shah.