Based in Kaustinen, Finland, Botnia is a supplier of hardware, software, mechanical design and testing services to mobile handset vendors.

The acquisition will help the Indian company to set up its first European research and development centre and enhance its telecommunication software capabilities, the two companies said in a joint statement.

Botnia is a significant player in the hardware, software, mechanical and RF design, both for handset as well as for the network infrastructure market while Sasken is a major player in software with scale capability and global reach. The combined company will be able to provide solutions to worldwide customers in all different segments, primarily the networking equipment, the mobile handset and silicon companies.

Sasken hopes to benefit from Botnia's services that can be applied in R&D projects, sub-projects, tester design, as well as in cost reduction. The buyout will also help Sasken scale up its portfolio of offerings for telecommunications engineering.

Sasken currently operates two software development centers outside the country, in Mexico and China

Botnia employs 230 people. With its main operations - hardware and mechanical design centers - located in Finland, it also operates facilities in Denmark and Germany. The company has been in the business for the last 16 years and has market presence throughout Europe.