CG Power and Industrial Solutions on Saturday (October 5, 2024) said it has inked a pact to acquire the Radio Frequency (RF) components business of Japan-based Renesas Electronics Corporation for a cash consideration of $36 million.
An asset purchase agreement was executed on October 4, 2024 between CG and Renesas Electronics America Inc, a subsidiary of Renesas, and other affiliated entities of Renesas, that have assets in the RF components business, a BSE filing said.
As per the pact, Murugappa Group firm CG Power will acquire Intellectual Property (IP), tangible assets and select transferring employees across various functions such as semiconductor design, marketing, applications, etc. related to the RF components business of Renesas.
The proposed acquisition will enable the company enter the semiconductor design business.
CG Power has established a subsidiary, CG Semi Private Limited for Outsourced Semiconductor Assembly and Test (OSAT) business. CG and Renesas Electronics America Inc are joint venture partners in CG Semi Private Limited.
The said business will be acquired by entities that will be established by CG, post completion of customary conditions and applicable regulatory approvals, it said.
The acquisition is expected to be completed in about 6 months, subject to necessary approvals.
“A significant number of semiconductor designers globally are Indians. Through this acquisition, we aim to enhance India’s presence in the semiconductor design & development space, considered to be a high-growth and high-profitability sector,” Vellayan Subbiah, Chairman of CG Power and Industrial Solutions, said.
Davin Lee, Senior Vice President and General Manager of the Analog and Connectivity Group at Renesas, said this agreement will provide the opportunity for Renesas’ RF team to expand.
“…CG will deliver outstanding RF technology and world-class support to our customers, and we will support a smooth transition to facilitate the same. For Renesas, this move sharpens our focus on the strategic segment of our analog and connectivity business, enabling us to further scale to better serve customer demand,” Lee added.
A 124-year-old conglomerate with presence across India and the world, the ₹77,881 crore Murugappa Group has diverse businesses in agriculture, engineering, financial services and more.
The group has nine listed companies including Carborundum Universal Limited, CG Power & Industrial Solutions Limited, Cholamandalam Financial Holdings Limited, Cholamandalam Investment & Finance Company Limited, among others.
Published – October 06, 2024 02:20 am IST
