The Hindu Business Line : 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.

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