Moschip buys US co

Hyderabad, June 18 Moschip Semiconductor Technology on Wednesday announced the acquisition of US-based Indigita, the audio and video division of Intellasys.
Not disclosing the deal value, Mr K. Ramachandra Reddy, Chief Executive Officer and Chairman of Moschip, said the deal had been structured in a way that the buyout payment would be through royalty on product sales over a five-year period. It does not involve any cash transaction.

Addressing a press conference here , Mr Reddy said the company plans to roll out products designed and developed by the latter for the consumer electronics segment.
Moschip was also in talks with Sony, Panasonic and other companies engaged in consumer electronics with their products and expects to see this segment contributing about $2 million this year.

9 patents
Through this acquisition, the company has gained access to two products that go into camcorders. These products bring down the number of chips, packing various features into one. The company has also acquired nine patents through this acquisition, Mr Reddy said.
The company closed last year with revenues of about $6 million and expects to turn the corner by the second half of this fiscal.

Source : Business Line

MosChip to raise Rs 80cr to fund buyouts

MosChip Semiconductor Technology Ltd, a Hyderabad-based fabless semiconductor company, is planning to raise up to $20 million (around Rs 80 crore) to fuel its inorganic growth plans and working capital requirements.

The company is weighing various options including a preferential stock offering and a global depository receipt (GDR) issue to raise funds within the next six months, according to K Ram Reddy, chief executive officer and chairman of MosChip. The $6-million (Rs 24 crore) company had already raised $7.5 million (around Rs 30 crore) through a GDR issue in 2005.

Moschip is currently in talks with about four companies in the US that are in similar line of business and it would narrow down on two firms for acquisition in part-cash and part-stock deals in six months. The targeted companies have revenues in the range of $7 million (Rs 28 crore) and $10 million (Rs 40 crore), Reddy said, adding "We are still in the red as on last quarter. The new acquisitions are expected to help MosChip achieve a turn around during this year."
Meanwhile, MosChip on Wednesday announced the acquisition of Indigita, the audio-video (AV) division of US-based Intellasys. The deal transaction involves a mix of cash and stock offerings besides royalty payment on usage of technology that comes out of the acquired company's platform over a period of five years.

"This acquisition brought into our fold two products. One of these chip technologies has already been deployed in Japan's consumer electronic major Sony Corporation's Prosumer products. This technology also enabled us to feature in the approved vendors list (AVL) of Sony. We expect this product to add $2 million (Rs 8 crore) to our revenues during this financial year," Reddy said.

Source :Business Standard