Tejas Networks buys 62.65% stake in Saankhya Labs for Rs 276.24 crore

Tejas Networks said on Tuesday that it acquired a 62.65% stake in Saankhya Labs for Rs 276.24 crore.

In the stock exchange filing, the Tata Group telecoms equipment maker said it had bought “60.81946 equity shares through a secondary purchase at a price of Rs 454.19 per share, amounting for 62.65% of the equity share capital of Saankhya, on a fully diluted basis for a consideration of Rs. 276.24 crore.”

Shares of the company rose 1.17% on Tuesday, ending trading for the day at Rs 449.65 on the BSE.

With the shar buy, Saankhya is now a subsidiary of Tejas Networks. Tata Group Corporation added that it is in the process of acquiring the remaining balance of 1.75% (1,69,550 equity shares) in due course of time.

In March this year, Tejas Networks announced its plans to buy a 64.40% stake in Saankhya Labs for Rs 283.94 crore in a cash-out deal.

In March, Tejas Networks also disclosed plans to buy the remaining 35.6% of the company. "Tejas Networks, after obtaining all necessary sign-offs and approvals, also intends to proceed with the acquisition of the remaining 35.60% balance through a secondary merger or acquisition," it said.

The acquisition is expected to enhance Tejas Networks' wireless offerings by adding 5G ORAN and 5G Cellular Broadcast and Satellite communication to its product portfolio, as well as growing its customer base in India and international markets.

Tejas Networks also expects to strengthen its portfolio of intellectual property rights with 73 patents (41 and 32 filed) along with hardware and software design. The acquisition also gives the company access to in-house expertise in semiconductor chip design for specialized applications.

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