Intel Corporation has acquired Hyderabad-based semiconductor startup, Ineda Systems, for an undisclosed amount, in an all-cash deal sealed in last week, according to TOI.
The deal which had been sealed last week is more in the nature of an acquihire- a transaction in which a company is acquired mainly for the skill sets of its workforce rather than products or services.
With this acquisition, Intel will get a ready-made experienced SoC (System On a Chip) team to help build a world-class discrete GPU business.
Founded in 2011, by industry veterans from US and India Dasaradha Gude and Balaji Kanigicherla, Ineda was working with an ultimate goal of becoming a leader in developing low power SoC’s (System On a Chip) for the use in both consumer and enterprise applications.
Ineda operates in the sphere of autonomous driving, artificial intelligence and Internet of Things (IoT). The company has even managed to raise over $60 MN from high profile investors, including Cisco, Samsung Catalyst Fund, Qualcomm Ventures, Walden-Riverwood Ventures and Imagination Technologies, among others.
Intel has some ambitious plans in the area of graphics and has been working towards building a stronger team to scale its business and strengthen its current products and solutions. Hence, instead of only focusing on acquiring businesses for their products and services, Intel is adding more people capabilities.
Currently, Intel has a few hundred engineers engaged in software development in Hyderabad. But with the acquisition of Ineda and its plan to set up a global technology center in Hyderabad it will be increasing its headcount. The new Hyderabad center may have around 1,500 engineers initially, which may be ramped up to 5,000 people.