Tessolve is officially announcing its acquisition of another European company this week.
To grow in the semiconductor space, Suman Kant Munjal, the chairman of Rockman Industries, has decided to sell a 25-30 percent stake of Hero Electronix in Bengaluru-based semiconductor design and engineering firm Tessolve. Rockman Industries is a well-known Hero Industries firm that manufactures top-notch automotive components.
Reports surfaced that Munjal has given a top private investment bank the authority for the share sale. When questioned about the fund-raising program for the sale, Tessolve has shown no interest. Tessolve, which is worth around Rs 3,300—Rs 3,800 Crore in revenue, will help Hero Electronix grab a revenue of Rs 1,000-1,260 crore.
Tessolve was acquired by Hero Electronix in 2016, and now, Tessolve is aiming to set up more units in the country and globally. Media reports added that people familiar with the matter added that the firm is officially about to announce its acquisition of another European company this week. A senior Hero Executive said the company is seeking more funding to expand the network.
Over the past couple of years, backed by steady revenues, Tessolve has acquired several companies, including Bengaluru’s Pico2 Femto Semiconductor (P2fsemi) in 2022, focused on physical design solutions. Test & Verification Solutions (T&VS) was acquired in 2020 and focused on offering design-related services. The US-based Dynamic Test Solutions was also sold to Tessolve in 2010.
After being established in 2004, the semiconductor design firm offers comprehensive services from chip design to testing, production, and embedded software. The company serves a significant portion of the semiconductor industry, with a client base of 80 percent of the world’s top 20 semiconductor firms. Hero Electronix holds approximately 58 percent of Tessolve, while Singapore-based private equity firm Novo Tellus Capital Partners owns about 32 percent. The remaining shares are distributed among co-founder Raja Manickam, Qualcomm Ventures, investor Mike Bartley, angel investors, and employees through stock options.
