Arrow Electronics to buy product engineering company eInfochips

AHMEDABAD: New York Stock Exchange-listed Arrow Electronics Inc. has agreed to acquire Ahmedabad-based product engineering company eInfochips Ltd, the two companies said on Tuesday, without disclosing the size of the transaction.

The deal size is likely to be in the range of $300-325 million, an investment banker familiar with the development said on condition of anonymity.

The transaction is expected to close this month, eInfochips said in a statement.

“This deal is very important for India and the IT sector as it comes at a time when the industry is going through turbulent times,” said Pratul Shroff, chief executive of eInfochips.

“Unlike other services companies, we pioneered end-to-end product design, including hardware, software and industrial design. This acquisition is also a testament to our engineering execution, expertise in connected devices and connecting them to the cloud, and the trust that our clients place in us.” Shroff declined to comment on the size of the deal. Avendus Capital advised eInfochips on the transaction. Ahmedabad-based GVFL Ltd (formerly known as Gujarat Venture Finance Ltd) holds close to 5% in eInfochips.

With annual revenue of about ₹500 crore and profit of over ₹100 crore, eInfochips has over 1,700 employees worldwide.

On its successful completion, the acquisition will give Arrow access to eInfochips’ 1,500 Internet of Things (IoT) solution architects and software development resources.

Arrow Electronics is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions.