<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hero+Electronix">Hero Electronix</a>, an arm of the Hero Group, has acquired a “significant minority stake” in Bengaluru-based semiconductor test engineering services company Tessolve Semiconductor.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hero+Electronix">Hero Electronix</a>, an arm of the Hero Group, has acquired a “significant minority stake” in Bengaluru-based semiconductor test engineering services company Tessolve Semiconductor.
“We have acquired a strategic stake in Tessolve semiconductor. It is a global leader in semiconductor test engineering services with businesses in India, US, Malaysia and Singapore, and clients such as <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Qualcomm">Qualcomm</a>, AMD and Intel,” Hero Electronix founder-director Ujjwal Munjal said in an interview.
He declined to specify financial details and the size of the stake Hero Electronix acquired.
“It is a phase-wise acquisition. Towards the end of this year, we will have significant majority in the company,” Munjal said.
Tessolve Semiconductor offers engineering expertise in semiconductor design, test/product engineering, PCB design, failure analysis and systems design.
Hero Electronix was formed in 2015 and marked the Delhi-based Hero Group’s entry into the electronics and technology space.
Last year, Hero acquired Mybox Technologies, which makes set-top boxes in India. In 2015-16, Mybox Technologies clocked revenue of Rs.300 crore, which Munjal is seeking to double in the current financial year. .
Tessolve, Munjal said, will continue to focus on businesses outside of India. It will look to capitalise on the government’s Make in India initiative, which is aimed at encouraging the manufacturing industry.
Tesssolve is a $25 million by yearly revenue company. Munjal plans to ramp up its revenue fivefold in the next five years as part of a larger plan to expand Hero Electronix into a $1 billion company that specialises in digital products and solutions.
Hero Electronix and other group companies will invest upto Rs.1,200 crore in the next 5-7 years on expansion of the electronics business.
Thursday’s announcement is another bid by the Munjal family, owners of the <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hero+Group">Hero Group</a>, to branch out into other sectors from its main business of making motorcycles. The group has interests in renewable energy and financial services, among others, and runs a university in Haryana named after the late family patriarch Brijmohan Lall Munjal.
The Munjals started Hero by selling bicycles and went on to form Hero Honda Motor Ltd, a joint venture with Japanese auto maker Honda Motor Co., that lasted 27 years before the two sides decided to part ways in December 2010.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/hero-future-in-talks-to-raise-rs1000-crore-from-cdc-group-ifc-36203/">India: Hero Future Energies in talks to raise $150m from CDC Group, IFC</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-hero-cycles-acquires-60-stake-in-sri-lankas-bsh-ventures-35294/">India: Hero Cycles acquires 60% stake in Sri Lanka’s BSH Ventures</a>
<h4 style="text-align: justify;">This story was first published on<a href="http://www.livemint.com"> livemint.com</a></h4>

Hero Electronix official says it’s a phase-wise acquisition and the firm will have a significant majority towards the end of the year

India: Hero Electronix buys majority stake in Tessolve Semiconductor

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

India: Hero Electronix buys majority stake in Tessolve Semiconductor

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief