HYDERABAD: Global engineering services player Cyient has acquired a 27.3% stake in US-based fabless custom ASIC company Azimuth AI for a cash consideration of $7.25 million.
The Hyderabad-based company will be routing this investment through its step-down subsidiary, Cyient Semiconductors Inc, which in turn is a wholly owned subsidiary of Cyient Semiconductors Private Limited. The transaction is expected to be wrapped up by Nov 30, 2024.
Cyient stated that the strategic investment in Azimuth AI, known for its expertise in intelligent energy and power solutions, marks a significant milestone in its efforts to expand its capabilities and drive innovation across the semiconductor industry.
Cyient Executive Vice-Chairman & Managing Director Krishna Bodanapu said the acquisition will enhance the company’s capabilities in the critical semiconductors space while reinforcing its commitment to next-gen power and energy solutions.
“In July this year, we announced the strategic expansion of our semiconductor business with the establishment of a fully owned subsidiary. Investing in Azimuth AI strengthens our focus on building cutting-edge ASIC chips designed and developed in India — for the world.”
“Driven by the Indian govt’s initiatives to boost domestic innovation in semiconductors, India is emerging as a hub for chip development, especially in power and energy-efficient systems,” he added.
Pointing to the synergies between the two companies, Azimuth AI Founder & CEO Praveen Yasarapu said, “We are eager to leverage Cyient’s deep expertise in ASIC design, coupled with their proven ability to deliver high-quality, innovative solutions across multiple industries. Together, we aim to deliver groundbreaking solutions that will push the boundaries of semiconductor technology for the global as well as Indian market.”