Borqs Technologies completed cash sale of core businesses to Sasken Technologies of India
Borqs Technologies, Inc. has announced that it has completed the sale of its core businesses to Sasken Technologies, Ltd., a global product engineering and digital transformation services company based in India. Included in the sale were all of the Company’s embedded software design and customised hardware manufacturing of products for the Internet of Things (IoT) activities. Price for the sale totalled US$40 million, a portion will be reserved for employees, tax withholding and payments subject to an earnout arrangement linked to performance in the year 2025.
Along with customers’ contracts, technology licenses, IP, transferring of the employment agreements of key personnel and assets required for the Company’s operations, certain subsidiaries of the Company crucial for servicing the customers are included in the sale.
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.
Pat Chan, the CEO of Borqs, said: “As we mark a significant milestone in our journey, I am proud of the exceptional achievements of our team at Borqs since our founding in 2007. Over the years, we have established ourselves as a global leader in Android and IoT technologies, delivering innovative solutions that have empowered our clients worldwide. I am confident that Sasken Technologies Limited will leverage our expertise to drive even greater success for our customers, ensuring the continued growth and prosperity of our business.”
Borqs will use the cash received from the transaction in investment activities focusing on emerging opportunities in artificial intelligence (AI) and capital-related ventures, participate in shaping the future of these industries and capitalising on the latest trends in technology.
Commenting on the acquisition, Rajiv C. Mody, the chairperson, managing director and CEO at Sasken Technologies Limited, 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 Automotive, SatCom, Consumer, Industrial IoT and 5G.”
Hareesh Ramana, one of the founders of Borqs Technologies Inc and the managing director of Borqs India will join the Sasken leadership as part of this acquisition and lead the efforts to integrate Borqs capabilities into the Sasken repertoire.
Founded in 2007, Borqs, a publicly traded company, has built a strong reputation in end-to-end wireless product solutions for mobile telecommunications and IoT. The company has alliances with companies like Qualcomm and works with key mobile network operators and OEMs. With about 300 employees and a presence across continents, Borqs is well-positioned to capitalise on the growing demand for IoT and 5G technologies, using its software platform to offer customisable wireless product solutions across various industries, including utilities, automotive and smart cities.
Comment on this article below or via X: @IoTGN and visit our website IoT Global Network