Sasken Technologies Limited announced the intent to acquire ODM and software services business of Borqs Technologies, Inc.
This strategic move is aligned with Sasken’s 60x4x3 strategy to drive growth, innovation, and competitiveness in the market. The acquisition will enable Sasken to support customers in designing, developing, and commercialising connected devices from concept to market. It includes ideation, IP development, software and product realisation, and hardware supply chain management. Working closely with chipset partners, Sasken will create a range of connected devices, including mobile phones, tablets, smartwatches, and various IoT products.
Under the terms of the deal:
- Sasken will assume control of Borqs Technologies’ ODM and software services business assets and operations, without any associated liabilities.
- The total consideration, inclusive of earn-outs, management incentives, and other payouts, shall not exceed USD $40 million. Earnouts are linked to performance of target entities in 2025
Speaking on the occasion, Mr. Rajiv C. Mody, CMD & CEO, Sasken Technologies said, “This acquisition reflects our commitment to expanding our technological footprint and delivering advanced solutions to meet the evolving demands of our customers. By integrating Borqs’ capabilities, we will strengthen our portfolio, improve our competitiveness, and drive future growth in high-demand markets like IoT and 5G.”
Founded in 2007, Borqs Technologies, a publicly traded company, has built a strong reputation in end-to-end wireless product solutions for mobile telecommunications and IoT. The company has strategic alliances with industry leaders like Qualcomm and works with key mobile network operators and OEMs. With close to 300 employees and a presence across continents, Borqs is well-positioned to capitalise on the growing demand for IoT and 5G technologies, leveraging its software platform to offer customisable wireless product solutions across various industries, including utilities, healthcare, and smart cities.
“After the strategic alliance with Sasken, Borqs intends to use the proceeds to develop the next generation AI and blockchain software and services. Borqs plans to continue to collaborate with Sasken to leverage its Silicon design capabilities to develop AI oriented products,” said Pat Chan, CEO of Borqs.
The transaction is expected to be complete by the end of 2024 and the companies together will continue investing in innovation to develop cutting-edge solutions that align with customers’ strategic goals.