Adesto Technologies, Santa Clara, Calif., a provider of innovative application-specific semiconductors for the IoT era, announces that it has acquired Dublin-based S3 Semiconductors, a global supplier of mixed-signal and RF application specific integrated circuits (ASIC) and an extensive library of design IP. The transaction is valued at approximately $35 million, with an additional earn-out provision based on certain milestones to the end of calendar year 2019.
Highlights of expected benefits:
–Expands Adesto’s portfolio of products and technologies with analog, mixed-signal, and RF solutions and IP
–Accelerates revenue and customer growth in communications and industrial IoT with immediate cross-selling opportunities and nominal customer overlap
–Increases dollar content potential for IoT edge nodes
–S3 Semiconductors is a highly-valued design partner of Arm Holdings
–Adds high-value embedded systems expertise and mixed-signal engineering team
–Immediately accretive to gross margin and adjusted EBITDA
“Building on our leadership position in IoT memories, today we take a meaningful step in becoming a supplier of a broad range of innovative semiconductor products and solutions for the IoT markets,” said Narbeh Derhacobian, CEO of Adesto. “S3 Semiconductors has a proven track record of designing and delivering differentiated ASIC products, and an extensive IP portfolio developed by a talented team of design engineers over many years. Through this acquisition, we are significantly expanding our customer base and SAM with a broader product portfolio and comprehensive systems expertise to deliver a complete solution to our customers.”
According to Dermot Barry, vice president and general manager of S3 Semiconductors, “Over the years, S3 Semiconductors has built a first-class team that is focused on creating complex, high-quality custom products. Joining forces with Adesto gives us access to a broader sales channel with a group of diversified top-tier customers who will benefit from our ability to deliver highly optimized ASICs with unrivaled cost economies. Moreover, the combined company is well-positioned to gain increasing traction in IoT to drive toward the next phase of innovation and growth.”
S3 Semiconductors will become a business unit of Adesto and will continue to operate under its current operating model across existing global sites, including its four design centers in Dublin, Cork, Prague, and Lisbon.
