NEW DELHI: Larsen & Toubro (L&T) on Tuesday said it has signed an agreement to acquire Bengaluru-based SiliConch Systems for Rs 183 crore.

The buyout is likely to add engineering skill sets and design expertise to strengthen the group's presence in the fabless semiconductor business.

"L&T Semiconductor Technologies Ltd, a wholly-owned subsidiary of the company has entered into a share purchase agreement on July 8, 2024 for acquisition of 100 per cent stake in SiliConch Systems," L&T said in a filing to BSE.

The acquisition is likely to be completed by September, subject to customary closing conditions. Semiconductor ecosystem consists of three parts - designing, manufacturing and testing.

The acquisition cost consists of "an upfront amount of Rs 133 crore payable at closing, subject to customary closing adjustments; and a deferred amount of Rs 50 crore payable over four years, subject to closing adjustments and achievement of certain targets and other conditions," the filing said.

SiliConch, incorporated in April 2016, specialises in the development and design of semiconductor Intellectual Property (IP) and Integrated Circuits (IC). It is a fabless semiconductor design company which develops system-on-chip IP, and has 30 granted patents across geographies.