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Silicon Labs acquires wireless mesh networking firm

Posted: 22 May 2012     Print Version  Bookmark and Share

Keywords:wireless mesh networking technology  acquisition  mixed-signal ICs  system-on-chip 

Silicon Laboratories, a provider of mixed-signal ICs, has signed a definitive agreement to acquire wireless mesh networking technology firm Ember Corporation for about Rs.376.96 crore ($72 million).

Ember is a private company offering silicon, software and development tools for 2.4GHz wireless mesh networking solutions being deployed in smart energy, connected home, security, lighting, and many other monitoring and control applications. Ember is a pioneer in the market for 802.15.4 ZigBee solutions, developing mesh networking technology since the concept was first conceived.

"This strategic acquisition brings Silicon Labs the technology and software expertise required to enable the low-power mesh sensor networks being deployed today in a wide range of residential, commercial and industrial applications," Silicon Labs said in a statement.

The Ember portfolio complements Silicon Labs' products and targets a growing market estimated to increase from Rs.523.56 crore ($100 million) in 2012 to Rs.3,141.36 crore ($600 million) by 2016. The combination of the companies' products will bring together microcontroller (MCU), power and isolation technology, sensors, and both sub-GHz and 2.4GHz wireless radios into a comprehensive portfolio of integrated networking solutions for embedded systems.

The demand for low-power, small-footprint wireless technology is accelerating as more and more IP-enabled end points are being connected to the "Internet of Things." Expected to be the first 10 billion unit per year market, the Internet of Things is being realised to enable more convenient, energy-efficient and safer home and work environments.

Silicon Labs expects that the addition of Ember's system-on-chip (SoC) portfolio, advanced networking software expertise, and a proven design and applications team will contribute to the rapid expansion of its Broad-based business.

"This acquisition of a high-caliber team with proven wireless mesh networking know-how accelerates our ability to offer complete system solutions to our customers," said Tyson Tuttle, president and CEO, Silicon Laboratories.

Silicon Labs said the Rs.376.96 crore ($72 million) acquisition price is subject to an adjustment for certain working capital amounts and potential earn-out consideration. However, Ember is expected to contribute approximately Rs.52.36 crore ($10)-Rs.62.83 crore ($12 million) in revenue in the second half of 2012 and to be accretive on a non-GAAP basis in 2013.

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