Companies' Combined Portfolios Provide Enabling Technology for the
Internet of Things
AUSTIN, Texas--(BUSINESS WIRE)--
Silicon
Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal ICs, today announced it has signed a
definitive agreement to acquire Boston-based Ember
Corporation for initial consideration of $72 million, subject to an
adjustment for certain working capital amounts and potential earn-out
consideration. Ember is a late-stage private company offering
market-leading silicon, software and development tools for 2.4 GHz
wireless mesh networking solutions being deployed in smart energy,
connected home, security, lighting, and many other monitoring and
control applications.
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. 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 realized to enable more convenient, energy-efficient and safer
home and work environments.
The Ember portfolio complements Silicon Labs' products and targets a
growing market estimated to increase from $100 million in 2012 to $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 2.4 GHz wireless radios into a comprehensive
portfolio of highly integrated networking solutions for embedded systems.
"Silicon Labs has consistently demonstrated a successful track record of
integrating high-performance, low-power RF and mixed-signal ICs in CMOS
and ramping them into high-volume markets," said Tyson Tuttle, president
and CEO of Silicon Laboratories. "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."
Ember is a pioneer in the market for 802.15.4 ZigBee®
solutions, developing mesh networking technology since the concept was
first conceived. The design team represents some of the most experienced
talent in embedded radios. The company's products integrate
high-performance, low-power 2.4 GHz wireless ICs with reliable and
scalable networking software into a platform with unmatched performance
and flexibility. With more than a decade of systems and software
knowledge applied to the connected home, smart meters and building
automation and more than 25 million units shipped, Ember has developed a
leadership position in ZigBee-based systems and has established the
benchmark for performance and usability.
"We believe our track record and technology leadership in ZigBee-based
systems combined with Silicon Labs' broad portfolio and focus on
establishing a market-leading business in embedded wireless will enable
our customers and the Internet of Things market to grow faster," said
Bob LeFort, chief executive officer of Ember. "The shared vision,
compatible cultures and commitment to excellence augurs well for both
the market as well as the Ember team."
Silicon Labs expects that the addition of Ember's high-performance
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. Silicon Labs intends to apply the
underlying technology platform and expertise to enable low-power mesh
networking in not only home but also industrial and commercial
applications. Further, both companies' products leverage the same
underlying development environment, which is expected to accelerate the
combined roadmap and support rapid adoption among the existing customer
base.
Ember is expected to contribute approximately $10-$12 million in revenue
in the second half of 2012 and to be accretive on a non-GAAP basis in
2013. The boards of each company have approved the acquisition, which
awaits the satisfaction of regulatory requirements and other customary
closing conditions. In conjunction with this all-cash acquisition,
Silicon Labs' board of directors has authorized management to pursue a
$200 million credit facility that could be used for stock repurchases
and for other general corporate purposes.
Webcast Wednesday, May 23rd
An investor conference call and presentation are scheduled in
conjunction with the Barclays Global Technology, Media and
Telecommunications Conference at the Sheraton New York Hotel at 4:15
p.m. Eastern Time on Wednesday, May 23rd. Access to the presentation and
audio webcast will be available on the investor page of Silicon
Laboratories' website at http://investor.silabs.com.
About Ember
Ember Corporation (www.ember.com;
twitter: @EmberCorp) develops wireless mesh networking technology —
chips, software and tools - for Smart Energy, connected homes, and many
other monitoring and control applications enabling greener living and
work environments. The Boston-based company has approximately 60
employees worldwide including an IC design center in Cambridge, England.
About Silicon Laboratories Inc.
Silicon Laboratories is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs' diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size
and power consumption. For more information about Silicon Labs, please
visit www.silabs.com.
Cautionary Language
This press release contains forward-looking statements based on Silicon
Laboratories' current expectations. The words "believe," "estimate,"
"expect," "intend," "anticipate," "plan," "project," "will,"
"expanding," "growing," and similar phrases as they relate to Silicon
Laboratories or Ember are intended to identify such forward-looking
statements. These forward-looking statements reflect the current views
and assumptions of Silicon Laboratories and are subject to various risks
and uncertainties that could cause actual results to differ materially
from expectations. Among the factors that could cause actual results to
differ materially from those in the forward-looking statements are the
following: risks related to the successful completion of the development
and implementation of Ember's technology, risks that the acquisition may
not yield the expected benefits due to the failure to properly integrate
the acquired business and employees; risks that the acquired business'
products and processes under development may fail to achieve market
acceptance; risks of disputes regarding the acquired business and
intellectual property; risks that the performance of Silicon
Laboratories' existing business may not offset the dilutive effects of
the acquisition; risks associated with the competitive and cyclical
nature of the semiconductor industry and other factors that are detailed
in Silicon Laboratories' filings with the SEC. Silicon Laboratories
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Note to editors: Silicon Laboratories, Silicon Labs and the Silicon
Labs logo are trademarks of Silicon Laboratories Inc. All other product
names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc.
Shannon Pleasant, 512-464 9254
shannon.pleasant@silabs.com
Source: Silicon Laboratories Inc.
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