INDIA -- RRP Electronics has signed a memorandum of understanding and term sheet to acquire Vital Electronics, an electronics manufacturing services provider, as it looks to expand from semiconductor packaging into complete electronic system manufacturing.

RRP plans to acquire 100% of Vital Electronics in four tranches, targeting 50% ownership by March 2027 and completion of the acquisition by March 2028, subject to agreed milestones and regulatory approvals.

Vital Electronics provides contract manufacturing services including printed circuit board assembly, surface mount technology, electromechanical assembly, engineering, sourcing, testing, system integration, packaging and box-build services.

The proposed acquisition is expected to complement RRP's outsourced semiconductor assembly and test (OSAT) and assembly, testing, marking and packaging (ATMP) operations. Combining the companies would create an integrated manufacturing chain spanning semiconductor packaging, PCB assembly and finished electronic systems.

RRP said the combination would enable semiconductor devices manufactured and packaged by the company to be integrated onto printed circuit boards and incorporated into systems for defense, automotive, industrial, telecom and consumer electronics applications.

Following the acquisition, RRP plans to add and merge Vital Electronics with one of the RRP Group's listed entities, subject to corporate, statutory and regulatory approvals.

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