M&A

M&A

Sona Comstar acquires majority stake in Serbia's Novelic for $43.43 M

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Publicly listed Sona BLW Precision Forgings (Sona Comstar) is to acquire a 54% stake for 40.5 million euro (about USD 43.43 million or INR 355 crore) in Novelic, a Serbia-based company which provides mmWave radar sensors, perception solutions and full-stack embedded systems. The acquisition - which will boost the acquirer's ADAS (Advanced Driver Assistance Systems) offerings - will be 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 64.5 million euro (INR 566 crore) on a pre-money basis and 75 million (INR 659 crore) on a post-money basis, with an implied valuation multiple of 26 times CY22 Estimated PAT (profit after tax). Founded in 2012, Novelic reported revenue of 9.33 million euro (INR 81 crore) and a net profit of 2.5 million euro (INR 22 crore) respectively in 2022. The company has over 30 engineers and holds multiple global patents in the area of mmWave radar sensing and systems. It has grown at more than 50% CAGR over the last 10 years without raising any external equity capital. The company has been profitable every year since its inception. Novelic's mmWave radar technology is said to be a leading solution for in-cabin sensing due to its high accuracy, lower cost and protection of occupants' privacy. Through its sophisticated radar design and signal processing algorithm, its in-cabin monitoring solution detects life presence (LPD), child presence (CPD), and seat occupancy (SOD), amongst others. The in-cabin solution is highly accurate as it works under all light conditions, detects vital signs (heart rate and respiration) and locates objects anywhere in the cabin. NOVELIC's mmWave radar-based solution removes the need for weight sensors and associated wiring harnesses, resulting in significant cost savings for carmakers. Unlike cameras, mmWave radar-based in-cabin sensing protects the privacy of occupants in the car. The Novelic team, led by its founders Darko Tasovac, Veljko Mihaljovic and Dr Veselin Brankovic, will continue to lead the operations. The founders will hold 46% stake in Novelic