Hyderabad-based INVECAS Technologies, which provides complete solutions to the semiconductor industry, will acquire US-based Lattice Semiconductor Corporation’s HDMI design team and Simplay Labs subsidiary, which oversees standards compliance and interoperability testing services.
As part of the agreement, Lattice will transfer its Hyderabad subsidiary and certain assets, including its Simplay Labs testing and certification business, to INVECAS.
Post-acquisition, about 150 research and development staff, labs and other assets from Lattice’s operations in San Jose and Hillsboro in the US, Hyderabad, as well as Shanghai and Shenzhen in China, will be transferred to INVECAS.
The value of the transaction has been pegged at $5 million and is expected to close in August. “Lattice has successfully established a number of global connectivity technology standards, built a highly valued intellectual property portfolio, and provided trusted testing and compliance services to the consumer electronics industry,” said Dasaradha Gude, Chief Executive Officer of INVECAS.
“We will raise the funds required for the acquisition internally. We don’t need to raise them externally,” he told BusinessLine after announcing the acquisition plan.
In a filing with the Securities and Exchange Commission (SEC), US, Lattice said it is also implementing a limited workforce reduction, which is expected to impact about 30 additional employees worldwide, and an initiative to reduce its infrastructure costs.
“Lattice’s strategy, associated product and intellectual property roadmaps remain unchanged. The businesses to be transferred were deemed non-core. The reduction in workforce actions are part of an overall plan to enhance the company’s financial and competitive position by better aligning its revenue and operating expenses,” it said.