Sona BLW Precision (Sona Comstar) is in the limelight today, rising almost 9% to hit an intraday high at Rs.458.90 on the back of over 7.5x rise in volumes. Its 52-week high is at Rs.795.
The stock price rose after the company announced that it has signed an agreement to acquire 54% stake in Serbian firm NOVELIC, which is a leading provider of mmWave radar sensors, perception solutions and full-stack embedded systems. This 52% stake will cost Sona Euro 40.5 million 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 (EV) of euro 64.5 million on a pre-money basis and euro 75 million on a post-money basis, with an implied valuation multiple of 26 times CY22 estimated PAT. The transaction is expected to close by the end of Q4FY23 and is subject to customary closing conditions.
The company has said in its Press Release that this acquisition is expected to be EPS accretive from the first year and offers strong growth opportunities over the medium term.
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.