- Complements and expands Semtech's existing long-range low-power RF technology portfolio
- Expands served addressable market in industrial and home automation RF applications
CAMARILLO, Calif.--Marrch 7, 2012 -- Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced it acquired Cycleo SAS and all of its assets, related companies and operations. Headquartered in Grenoble, France, privately-held Cycleo develops IP for wireless long-range semiconductor products used in smart metering and other industrial and consumer markets. Cycleo technology will be incorporated in future Semtech RF platforms that need to deliver extended range at lower cost and lower power.
"We are very excited to have Cycleo become a part of Semtech," stated Mohan Maheswaran, President and Chief Executive Officer of Semtech. "Cycleo's IP portfolio is highly complementary to Semtech's product roadmap, especially in the fast-growing Energy Control, Security and Asset Management markets. Associating our high-sensitivity, low-power transceiver technology with the Cycleo long-range IP allows Semtech to create disruptive products, enabling new long-range applications that drastically reduce the infrastructure costs."
In a joint statement, Cycleo senior executives Francois Sforza and François Hede and the company founders noted: "We are thrilled to be joining Semtech, whose leadership in the high-end wireless and sensing business was the best possible fit for Cycleo technology. The Cycleo IP product line complements particularly well Semtech's current offering and will bring customers a unique set of high-end, digitally enhanced wireless solutions."
Under the terms of the agreement, Semtech paid the stockholders of Cycleo $5 million in cash at closing. The stockholders will be able to earn up to an additional $16 million in cash based on the achievement of revenue and operating profit goals over the next four years. The transaction was funded from Semtech's existing international cash reserves. Semtech estimates the transaction will have no material impact to earnings in its current fiscal year.
Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, computing, communications and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com.
Cycleo is a provider of innovative wireless solutions offering long-range machine-to-machine communication to the wireless world. Based upon a disruptive patented technology, Cycleo's solutions enable unprecedented range without raising emission power at a very low cost. Cycleo operates worldwide and provides Intellectual property and design solutions to the electronic and semiconductor industry. For more information visit: http://www.cycleo.net.