News Article
Silicon Laboratories To Buy Integration Associates
The acquisition of the diversified mixed signal company to bring new product vectors and high calibre development team.
Silicon Laboratories announced it has signed a definitive agreement to acquire Silicon Valley based Integration Associates, an innovator in analogue intensive, highly integrated ICs, for net $80 million, taking into consideration Integration Associates' cash balances and net current assets. Integration Associates brings a diverse portfolio of connectivity, wireless and power solutions, quality revenue and nearly 100 engineers to Silicon Laboratories.
Integration Associates' portfolio is aligned with Silicon Laboratories' objective to broaden system content within existing applications and to enter new markets. Specifically, the acquisition augments Silicon Laboratories' R&D investments currently in place in short range wireless, a large market that includes home automation, remote keyless entry and automated meter reading applications. This is an untapped market for Silicon Laboratories where Integration Associates has developed innovative products, an expanding customer base and a growing revenue stream.
Integration Associates' products will also accelerate Silicon Laboratories' expansion into the audio subsystem, a natural extension of the current broadcast audio portfolio. And, the company's power portfolio is a strategic addition to Silicon Laboratories' nascent power product line, which is in the early stages of revenue ramp.
“This acquisition will enable us to address new product vectors, accelerate time to revenue for current investments and further scale our engineering team with the addition of an experienced group of mixed signal design and application engineers,” said Necip Sayiner, president and CEO of Silicon Laboratories. “Additionally, good quality revenue and attractive growth potential further enhance our operational profile as we expect this transaction to be accretive in 2009.”
“We have developed a solid business based on innovative technology, and we're at a key inflection point with new products,” said Jean-Luc Nauleau, CEO of Integration Associates. “The timing is right for us to leverage the sales channel and infrastructure of a larger company, and Silicon Labs is the perfect partner. Our technology focus and core competency are well aligned with Silicon Labs' capabilities, and we will also have an opportunity to jump start a number of very promising new products as a result of the combination.”
Integration Associates is a private company based in Mountain View, California with additional design centres in Europe. The company has built quarterly revenue to a run rate of approximately $8 million. The acquisition is expected to be slightly dilutive to Silicon Laboratories in 2008, offset by better than previously anticipated performance in Silicon Labs' existing business. The acquisition is expected to be accretive in 2009. The board of directors of each company has approved the merger, which awaits the satisfaction of regulatory requirements and other customary closing conditions.
Integration Associates' portfolio is aligned with Silicon Laboratories' objective to broaden system content within existing applications and to enter new markets. Specifically, the acquisition augments Silicon Laboratories' R&D investments currently in place in short range wireless, a large market that includes home automation, remote keyless entry and automated meter reading applications. This is an untapped market for Silicon Laboratories where Integration Associates has developed innovative products, an expanding customer base and a growing revenue stream.
Integration Associates' products will also accelerate Silicon Laboratories' expansion into the audio subsystem, a natural extension of the current broadcast audio portfolio. And, the company's power portfolio is a strategic addition to Silicon Laboratories' nascent power product line, which is in the early stages of revenue ramp.
“This acquisition will enable us to address new product vectors, accelerate time to revenue for current investments and further scale our engineering team with the addition of an experienced group of mixed signal design and application engineers,” said Necip Sayiner, president and CEO of Silicon Laboratories. “Additionally, good quality revenue and attractive growth potential further enhance our operational profile as we expect this transaction to be accretive in 2009.”
“We have developed a solid business based on innovative technology, and we're at a key inflection point with new products,” said Jean-Luc Nauleau, CEO of Integration Associates. “The timing is right for us to leverage the sales channel and infrastructure of a larger company, and Silicon Labs is the perfect partner. Our technology focus and core competency are well aligned with Silicon Labs' capabilities, and we will also have an opportunity to jump start a number of very promising new products as a result of the combination.”
Integration Associates is a private company based in Mountain View, California with additional design centres in Europe. The company has built quarterly revenue to a run rate of approximately $8 million. The acquisition is expected to be slightly dilutive to Silicon Laboratories in 2008, offset by better than previously anticipated performance in Silicon Labs' existing business. The acquisition is expected to be accretive in 2009. The board of directors of each company has approved the merger, which awaits the satisfaction of regulatory requirements and other customary closing conditions.
