CAMARILLO, Calif.-- March 4, 2015 -- Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced that it has completed the acquisition of Triune Systems, L.L.C. ("Triune Systems"), a privately-held supplier of wireless charging and power management platforms targeted at high and low power, high efficiency applications. The acquisition will add approximately 35 employees with the majority of these employees based in Plano, Texas. Ross Teggatz, Founder and Chief Executive Officer of Triune Systems, will join Semtech as Senior Vice President and General Manager of Semtech's Power Management and High-Reliability Product Group reporting directly to Semtech's President and Chief Executive Officer, Mohan Maheswaran.
Triune Systems' multi-mode wireless charging platforms currently in production offer a wide range of different power levels from 0.1W up to 20W while platforms in the prototype stage are expected to deliver up to 100W of power. These platforms are a good fit for the emerging wearable market as well as the industrial and automotive segments of the wireless charging market where high power, high efficiency and flexible solutions are required. The adoption of wireless charging is expected to increase significantly over the next few years and Triune Systems is well positioned to benefit from this market growth.
In addition to its portfolio of wireless charging platforms, Triune Systems has also developed an isolated switching platform that is targeted at home automation and other industrial markets. This platform has been designed to replace larger, less efficient solid state and mechanical relays.
Mohan Maheswaran, Semtech's President and Chief Executive Officer, stated, "Triune Systems has developed a number of innovative wireless charging platforms that address some exciting, emerging market segments. These platforms are very complementary to Semtech's current market focus. We are very excited to bring Semtech's power management portfolio and global strengths together with Triune Systems' expertise in wireless charging to introduce new, disruptive power platforms to the market. The acquisition of Triune Systems is consistent with our philosophy of acquiring key core competencies that position Semtech as a leading analog and mixed signal solutions provider in targeted high growth application segments."
"Triune Systems has focused on developing unique solutions for the wireless charging, portable charging and power management markets. We are very pleased to join Semtech, a company with an established reputation as a leading, high quality supplier of analog and mixed signal solutions. We believe Triune's products are a synergistic fit with many of Semtech's end-markets and customers, and I am delighted to be given the opportunity to lead Semtech's future Power Management and High-Reliability strategy," stated Ross Teggatz.
Under the terms of the purchase agreement, Semtech acquired all of the outstanding equity interests of Triune Systems for an aggregate purchase price of $45 million consisting of $35 million cash paid at closing, with an additional cash consideration of $10 million to be paid in six months and additional contingent consideration subject to achieving certain future financial goals. In conjunction with the transaction, Semtech expects to fund the aggregate purchase price using its revolving line of credit. Semtech expects the deal to be slightly accretive for its fiscal year 2016.
Semtech management will address questions about the acquisition during its fourth quarter and fiscal year 2015 earnings conference call that is scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, Wednesday, March 4, 2015. A live webcast of the call will be accessible at the Investor Relations section of the corporate website at www.semtech.com. A replay of the webcast will be available beginning approximately two hours after the conclusion of the call and will be available through April 1, 2015.
About Triune Systems
Triune Systems, L.L.C. is a semiconductor company that specializes in analog and mixed-signal integrated circuit solutions for power management, wireless charging, isolated switching, battery management, energy harvesting and critical function, high-reliability applications. With a focus on innovation and customer support, the Company enables its partners in the consumer electronics, solar power, medical products, industrial, automotive and defense industries to provide more energy efficient solutions for a secure and sustainable world.
Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, enterprise 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.