CG and Renesas Electronics America Inc. are joint venture partners in CG Semi, a subsidiary of CG engaged in outsourced semiconductor assembly and test (OSAT) business.
RF Components business being acquired consists of equipment, intellectual properties, inventories, customers, select transferring employees, contracts and other licenses. It had annual revenue of about $56 million in the calendar year 2023.
Through this transaction, the company 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. The proposed acquisition will enable the company to enter into the semiconductor design business.
The company will acquire RF component business for total consideration of $36 million and the acquisition is expected to be completed in about 6 months, subject to satisfactory completion of the conditions precedents as contained in the agreement including obtaining necessary approvals.
The proposed acquisition of RF Components business is subject to the approval of Committee on Foreign Investment in the United States (CFIUS) and other approvals, as may be necessary.
Vellayan Subbiah, chairman of CG Power and Industrial Solutions, said, '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.'
Davin Lee, senior vice president and general manager of the Analog and Connectivity Group at Renesas, added, 'This agreement with CG will provide the opportunity for our RF team to expand. We are pleased that 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.'
CG Power & Industrial Solutions is an engineering conglomerate with an impressive and diverse portfolio of products, solutions and services for Power and Industrial equipment and solutions, addressing myriad needs.
The company's consolidated net profit jumped 18.4% YoY to Rs 241.14 crore in Q1 FY25. Net sales increased 18.9% to Rs 2,227.52 crore in Q1 FY25 as compared with Rs 1874 crore in Q1 FY24.
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