Sasken Technologies Limited (NSE: SASKEN, BSE: 532663), an India-based leader in product engineering and digital transformation services, has announced plans to acquire the hardware and software services business of U.S.-based Borqs Technologies, Inc., a global player in embedded software and IoT products. This strategic acquisition is part of Sasken’s “60x4x3” growth strategy, focused on scaling innovation and market reach in high-demand areas like IoT and 5G.
The acquisition will expand Sasken’s capabilities in designing and deploying connected devices, including mobile phones, tablets, smartwatches, and IoT products. By integrating Borqs’ expertise, Sasken aims to enhance its support for customers from product ideation through to commercialization, including software and product development, IP creation, and hardware supply chain management. Through this deal, Sasken will work closely with chipset manufacturers to develop new connected devices that address the growing IoT market.
Terms of the Deal Under the agreement, Sasken will acquire Borqs’ hardware and software services assets and operations, with no associated liabilities. The acquisition price, including potential earn-outs and incentives, is capped at USD 40 million, with earn-outs tied to the performance of Borqs’ target entities in 2025.
Rajiv C. Mody, Chairman, Managing Director, and CEO of Sasken, commented, “This acquisition underscores our commitment to expanding our technological capabilities and delivering innovative solutions that meet our customers’ evolving needs. Integrating Borqs’ expertise will help us strengthen our portfolio, drive nonlinear revenue growth, and establish a stronger foothold in fast-growing sectors like IoT and 5G.”
About Borqs Technologies
Founded in 2007, Borqs Technologies has developed a solid reputation in wireless product solutions for mobile telecom and IoT, partnering with companies like Qualcomm and working with top mobile network operators and OEMs. With nearly 300 employees worldwide, Borqs provides customizable IoT solutions across various sectors, including utilities, automotive, and smart cities. Following the Sasken acquisition, Borqs will continue focusing on emerging opportunities in AI and blockchain technology.
Pat Chan, Chairman and CEO of Borqs, expressed optimism, saying, “This strategic partnership with Sasken will enable us to leverage our combined strengths to build a powerful innovation engine and keep clients at the forefront of technology.”
The acquisition is expected to be completed by the end of 2024.