Borqs Technologies Completed Cash Sale of Core Businesses To Sasken Technologies of India
Borqs Technologies (BRQSF) has completed the sale of its core businesses to Sasken Technologies for US$40 million. The transaction includes the company's embedded software design and IoT hardware manufacturing operations, along with customers' contracts, technology licenses, IP, key personnel, and important subsidiaries.
The sale amount will be partially reserved for employees, tax withholding, and performance-based earnout arrangements for 2025. Sasken will leverage the acquisition to enhance its capabilities in designing and developing connected devices, from concept to market, including mobile phones, tablets, smartwatches, and IoT products.
Following the sale, Borqs plans to redirect its focus toward emerging opportunities in AI and capital-related ventures. The company, founded in 2007, has approximately 300 employees and maintains strategic alliances with industry leaders like Qualcomm.
Borqs Technologies (BRQSF) ha completato la vendita delle sue attività principali a Sasken Technologies per 40 milioni di dollari USA. La transazione include il design di software embedded e le operazioni di produzione hardware IoT dell'azienda, insieme ai contratti con i clienti, licenze tecnologiche, proprietà intellettuale, personale chiave e importanti filiali.
L'importo della vendita sarà parzialmente riservato per i dipendenti, le ritenute fiscali e gli accordi di earnout basati sulle performance per il 2025. Sasken sfrutterà l'acquisizione per migliorare le sue capacità nella progettazione e nello sviluppo di dispositivi connessi, dal concetto al mercato, inclusi telefoni cellulari, tablet, smartwatch e prodotti IoT.
Dopo la vendita, Borqs prevede di reindirizzare la sua attenzione verso opportunità emergenti nell'AI e nelle iniziative legate al capitale. L'azienda, fondata nel 2007, conta circa 300 dipendenti e mantiene alleanze strategiche con leader del settore come Qualcomm.
Borqs Technologies (BRQSF) ha completado la venta de sus negocios principales a Sasken Technologies por 40 millones de dólares estadounidenses. La transacción incluye el diseño de software embebido y las operaciones de fabricación de hardware IoT de la empresa, junto con contratos con clientes, licencias tecnológicas, propiedad intelectual, personal clave y filiales importantes.
El monto de la venta se reservará parcialmente para empleados, retenciones fiscales y arreglos de earnout basados en el rendimiento para 2025. Sasken aprovechará la adquisición para mejorar sus capacidades en el diseño y desarrollo de dispositivos conectados, desde el concepto hasta el mercado, incluidos teléfonos móviles, tabletas, relojes inteligentes y productos IoT.
Tras la venta, Borqs planea redirigir su enfoque hacia oportunidades emergentes en IA y proyectos relacionados con el capital. La empresa, fundada en 2007, cuenta con aproximadamente 300 empleados y mantiene alianzas estratégicas con líderes de la industria como Qualcomm.
Borqs Technologies (BRQSF)는 Sasken Technologies에 4천만 달러에 핵심 사업을 매각했습니다. 이 거래에는 회사의 임베디드 소프트웨어 설계 및 IoT 하드웨어 제조 운영과 고객 계약, 기술 라이선스, 지적 재산, 핵심 인력 및 중요한 자회사가 포함됩니다.
판매 금액의 일부는 직원, 세금 원천징수 및 2025년 성과 기반의 Earnout 계약을 위해 예약될 것입니다. Sasken은 이 인수를 활용하여 개념에서 시장에 이르는 연결된 장치의 설계 및 개발 능력을 향상시킬 것입니다. 여기에는 모바일 전화, 태블릿, 스마트워치 및 IoT 제품이 포함됩니다.
판매 후, Borqs는 AI 및 자본 관련 사업의 새로운 기회에 집중할 계획입니다. 2007년에 설립된 이 회사는 약 300명의 직원을 두고 있으며 Qualcomm과 같은 업계 리더와 전략적 제휴를 유지하고 있습니다.
Borqs Technologies (BRQSF) a finalisé la vente de ses activités principales à Sasken Technologies pour 40 millions de dollars américains. La transaction comprend la conception de logiciels embarqués et les opérations de fabrication de matériel IoT de l'entreprise, ainsi que les contrats clients, les licences technologiques, la propriété intellectuelle, le personnel clé et des filiales importantes.
Le montant de la vente sera partiellement réservé pour les employés, les retenues fiscales et les accords de earnout basés sur la performance pour 2025. Sasken tirera parti de l'acquisition pour améliorer ses capacités dans la conception et le développement de dispositifs connectés, depuis le concept jusqu'au marché, y compris les téléphones mobiles, les tablettes, les montres intelligentes et les produits IoT.
Suite à la vente, Borqs prévoit de réorienter son attention vers des opportunités émergentes dans l'IA et les initiatives liées au capital. Fondée en 2007, l'entreprise compte environ 300 employés et entretient des alliances stratégiques avec des leaders de l'industrie comme Qualcomm.
Borqs Technologies (BRQSF) hat den Verkauf seiner Kernaktivitäten an Sasken Technologies für 40 Millionen US-Dollar abgeschlossen. Die Transaktion umfasst das Design von Embedded-Software und die Herstellung von IoT-Hardware des Unternehmens sowie Kundenverträge, Technologielizenzen, geistiges Eigentum, Schlüsselpersonal und wichtige Tochtergesellschaften.
Der Verkaufserlös wird teilweise für Mitarbeiter, Steuerabzüge und leistungsabhängige Earnout-Vereinbarungen für 2025 reserviert. Sasken wird die Übernahme nutzen, um seine Fähigkeiten im Design und in der Entwicklung von vernetzten Geräten zu verbessern, von der Idee bis zum Markt, einschließlich Mobiltelefonen, Tablets, Smartwatches und IoT-Produkten.
Nach dem Verkauf plant Borqs, seinen Fokus auf aufkommende Chancen im Bereich KI und kapitalbezogene Unternehmungen zu verlagern. Das 2007 gegründete Unternehmen beschäftigt etwa 300 Mitarbeiter und pflegt strategische Allianzen mit Branchenführern wie Qualcomm.
- Received US$40 million cash injection from sale of core businesses
- Strategic pivot towards emerging AI and capital ventures opportunities
- Maintains valuable strategic alliances with industry leaders like Qualcomm
- Divestment of core business operations and revenue-generating assets
- Reduction in operational scope and market presence
- Future revenue streams dependent on new, unproven business directions
Insights
Borqs' sale of its core IoT businesses to Sasken Technologies for
The deal structure includes important provisions worth noting: portions of the proceeds are allocated to employees, tax withholdings, and an earnout arrangement tied to 2025 performance metrics. While this reduces immediate cash available to the , it likely facilitates a smoother operational transition and incentivizes continued performance.
This divestiture represents a complete strategic pivot for Borqs. The company is shedding its established IoT embedded software design and hardware manufacturing operations to pursue opportunities in artificial intelligence and capital-related ventures. While this introduces execution risk as the company enters potentially unfamiliar territory, the substantial cash infusion provides a significant runway for this transformation.
The comprehensive nature of this transaction - including the transfer of customer contracts, IP, key personnel, and crucial subsidiaries - suggests this was a well-planned strategic exit rather than a distressed sale. This systematic approach indicates thoughtful corporate planning that maximizes value from the divested assets.
For investors, this transaction fundamentally alters Borqs' investment thesis. The company transitions from an established IoT player to essentially a cash-rich entity pursuing emerging technology opportunities. The successful deployment of this capital into promising AI investments will now become the primary value driver for shareholders.
HONG KONG, April 14, 2025 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (U.S. OTC: BRQSF, “Borqs” or the “Company”) today announced that it has completed the sale of its core businesses to Sasken Technologies, Ltd. (India NSE: SASKEN, BSE: 532663, “Sasken”), a leading global product engineering and digital transformation services company based in India. Included in the sale were all of the Company’s embedded software design and customized hardware manufacturing of products for the Internet of Things (IoT) activities. Price for the sale totaled US
Along with customers’ contracts, technology licenses, IP, transferring of the employment agreements of key personnel and assets required for the Company’s operations, certain subsidiaries of the Company crucial for servicing the customers are included in the sale.
The acquisition will enable Sasken to support customers in designing, developing, and commercializing connected devices from concept to market. It includes ideation, IP development, software and product realization, and hardware supply chain management. Working closely with chipset partners, Sasken will create a range of connected devices, including mobile phones, tablets, smartwatches, and various IoT products.
Pat Chan, CEO of Borqs, “As we mark a significant milestone in our journey, I am proud of the exceptional achievements of our team at Borqs since our founding in 2007. Over the years, we have established ourselves as a global leader in Android and IoT technologies, delivering innovative solutions that have empowered our clients worldwide. I am confident that Sasken Technologies Limited will leverage our expertise to drive even greater success for our customers, ensuring the continued growth and prosperity of our business.”
Borqs will use the cash received from the transaction in investment activities focusing on emerging opportunities in AI and capital-related ventures, participate in shaping the future of these industries and capitalizing on the latest trends in technology.
Commenting on the acquisition, Mr. Rajiv C. Mody, Chairperson, Managing Director & CEO, Sasken Technologies Limited, said: “This acquisition reflects our commitment to expanding our technological footprint and delivering advanced solutions to meet the evolving demands of our customers. By integrating Borqs’ capabilities, we will strengthen our portfolio, improve our competitiveness, and drive future growth in high-demand markets like Automotive, SatCom, Consumer, Industrial, IoT and 5G.”
Hareesh Ramana, one of the founders of Borqs Technologies Inc and Managing Director of Borqs India will join the Sasken leadership as part of this acquisition and lead the efforts to integrate Borqs capabilities into the Sasken repertoire.
Founded in 2007, Borqs, a publicly traded company, has built a strong reputation in end-to-end wireless product solutions for mobile telecommunications and IoT. The company has strategic alliances with industry leaders like Qualcomm and works with key mobile network operators and OEMs. With about 300 employees and a presence across continents, Borqs is well-positioned to capitalize on the growing demand for IoT and 5G technologies, leveraging its software platform to offer customizable wireless product solutions across various industries, including utilities, automotive, and smart cities.
For more information, visit:
https://www.sasken.com
https://www.borqs.com/
About Sasken:
Sasken is a specialist in Product Engineering and Digital Transformation providing concept-to-market, chip-to-cognition R&D services to global leaders in Semiconductor, Automotive, Industrials, Consumer Electronics, Enterprise Devices, SatCom, Telecom, and Transportation industries. For over 30 years and with multiple patents, Sasken has transformed the businesses of 100+ Fortune 500 companies, powering more than a billion devices through its services and IP. For more information, visit www.sasken.com
About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio. Borqs’ unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products. The Company is also currently in the development of 5G products for phones and hotspots.
Investor relations contact:
E: IR@borqs.com
Disclaimer on Forward Looking Statements:
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties associated with our expectations. Words such as “expects”, “believes”, “anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”, “might”, “plan”, “possible”, “should” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect our management’s current beliefs. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including the possibility that the transactions as described herein between Borqs and Sasken may not end up with positive benefits or at all. The reader is advised to refer to both companies’ filings with their respective securities and exchange authorities for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law and other regulatory requirements, the companies disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
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