MosChip Technologies has secured its Board’s approval to acquire 73% of the share capital of Vayavya Labs (VLPL) from its existing shareholders. The stakes are to be acquired for a total consideration of Rs 245.49 crore under Share Purchase Agreement (SPA), comprising Rs 148.52 crore in cash and Rs 96.97 crore through issuance of swap shares. Besides, the Board has approved the Issuance, offer, and allotment of 50,50,686 equity shares of the company, of face value Rs 2 each (Swap Shares), to the selling shareholders of VLPL on a preferential basis at an issue price of Rs 192, towards discharge of consideration of Rs 96.97 crore payable as part of the said transaction.
Additionally, the Board has approved the execution of a Shareholders’ Agreement (SHA) with the shareholders of VLPL for acquisition of the remaining 27% shareholding. The SHA will be executed after March 31, 2028, and the valuation will be linked to VLPL business performance. VLPL is engaged in the areas of Semiconductors, Consumer Electronics (CE), Mobility/Automotive Communication & Connectivity.
This acquisition significantly strengthens the company’s software led engineering capabilities and helps Top-line growth and EBITDA. Further, it will help the company to move up the value chain in Product Engineering Solutions and provide geographical expansion and diversification in Business development and Engineering.
MosChip Technologies is a publicly traded semiconductor and system design services company headquartered in Hyderabad, India.
