With an aim to foray into ADAS, Sona BLW Precision Forgings has signed an agreement to acquire a 54% equity stake in NOVELIC, a Serbia-based mmWave radar sensors, perception solutions and full-stack embedded systems provider.
Sona Comstar will acquire the equity stake in NOVELIC for € 40.5mn through a combination of primary and secondary purchases with a staggered payment structure in the ratio of 60:20:20 at closing,12 months and 24 months, respectively.
The transaction values NOVELIC at an enterprise value of € 64.5mn on a pre-money basis and Euro 75mn on a post-money basis, with an implied valuation multiple of 26 times of CY22 estimated PAT. The transaction is expected to close by the end of Q4FY23 and is subject to customary closing conditions.
With this acquisition Sona Comstar has started building its third business vertical of ADAS Sensors and Software to address the megatrends of increasing vehicle autonomy and automation.
A press release from Sona Comstar noted that the acquisition is expected to be EPS accretive for Sona Comstar from first year and offers strong growth opportunities over the medium term. NOVELIC’s CY22 Revenue and PAT is estimated at € 9.3 mn and € 2.5 mn respectively, and it has been profitable every year since its inception.
Vivek Vikram Singh, MD & Group CEO, Sona Comstar, noted that with the acquisition, the company has added in-cabin radar-sensing technology to its technology offering.
Increasing vehicle autonomy and automation is an emerging technology revolution in our industry, he added.
Vikram said, “As we had done with EVs in 2016, we are taking a meaningful early step in the direction of the Electrified Autonomous Vehicle or e-AV.”
Veljko Mihajlovic, Co-Founder and CTO, NOVELIC, said, “For moving to the next phase of our growth, we are delighted to have a strategic partner in Sona Comstar which shares the same commitment to innovation and technology and will support us in scaling up our business.
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