Hero Electronix's Tessolve acquires German chip design firm for ₹400 crore

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Subscribe to enjoy similar stories. New Delhi: Semiconductor design company Tessolve, owned by Hero Electronix, has acquired Germany's Dream Chip Technologies for ₹400 crore, in a deal that would enable the Bengaluru-based technology firm design more complex processors and give it a competitive edge. The deal strengthens Tessolve's design capabilities, besides giving it a much better access to European markets.

"We are about 30-plus employees in Europe and with this acquisition we'll have a much larger presence," Tessolve co-founder and CEO Srini Chinamilli told Mint. Dream Chip undertakes chip design or system-on-chip design for artificial intelligence (AI), automotive, data centre, and industrial markets. “The hottest topic currently in Germany is the autonomous driving where we can help the automotive industry to innovate even faster to stay competitive on the worldwide market," said Jens Benndorf, CEO of Dream Chip Technologies.

Dream Chip to continue to operate as separate brand The acquisition is an all-cash deal, and Dream Chip will continue to operate as a separate brand as Tessolve's arm. Tessolve will provide a platform with a larger global reach and engineering bandwidth, which in turn will help the German firm take up much larger projects and give them a better sales reach. The acquisition will also expand Tessolve’s European operations by adding four delivery locations across Germany and the Netherlands.