- Silicon Labs to pay $308 million in cash to acquire Redpine Signals’ Wi-Fi and Bluetoothassets, development centre in India and extensive patent portfolio
- The acquistion will include an at-scale design centre with approximately 200 employees in Hyderabad
Silicon Labs has announced that it has entered into a definitive asset purchase agreement with Redpine Signals. This has been done to acquire the company’s Wi-Fi and Bluetooth business, development center in Hyderabad and the patent portfolio for $308 million in cash.
Tyson Tuttle, CEO of Silicon Labs said, “The acquisition of Redpine Signals’ ultra-low-power Wi-Fi and Bluetooth products and extensive intellectual property portfolio will expand our leadership in IoT wireless technology. The addition of these products into our worldwide sales and distribution network will drive further momentum in the smart home, industrial IoT and commercial markets for customers who want to get to market quickly with Wi-Fi enabled connected devices
At-scale design centre in Hyderabad
Wi-Fi 6 (802.11ax) is an evolution of the Wi-Fi standard which works with low power, performance, security and interoperability requirements that are needed in environments with IoT devices connected in hundreds or thousands. The companies said that the integration of the Redpine Signals technology will accelerate Silicon Labs’ roadmap for Wi-Fi 6 silicon, software and solutions. The acquisition will also include Bluetooth Classic IP (including Extended Data Rate) for audio applications like wearables, wearables, voice assistants and smart speakers. The acquisition will include an at-scale design centre with approximately 200 employees in Hyderabad.
Venkat Mattela, founder and CEO of Redpine Signals said, “My team is excited to join Silicon Labs to help build a smarter, more connected world. Backed by two decades of advanced research in OFDM and MIMO systems, Redpine has created highly-differentiated, low-power multiprotocol SoCs. Going forward, low-power Wi-Fi 6 is a key wireless technology for connectivity in IoT devices.”
Silicon Labs also said that the transaction will add approximately $20 million in incremental revenue on an annualized basis for FY2020. It will enhance its IoT revenue growth rate at a comparable gross margin. This transaction will also add approximately $15 million of non-GAAP operating expenses on an annualized basis.