Cypress Semiconductor Corp. today announced the acquisition of ScanLogic Corp., a privately-held company specializing in Universal Serial Bus (USB) controllers for embedded applications.
The Burlington, Mass. firm earned revenue of $3.8 million in the first quarter and is expected to add $20 or $25 million to Cypress' revenue for 2001, officials said. Financial details of the all-cash deal, effective immediately, were not released.
This marks Cypress' 11th acquisition during the past two years and its third USB acquisition.
In the mid-90's, San Jose-based Cypress was dependent largely on commodity SRAM. With its acquisitions, the company has directed its focus toward communication ICs and this year about 75% of its revenue will come from the communications market, officials said.
The ScanLogic purchase allows Cypress to offer products in all three USB markets -- USB 2.0, embedded systems and USB-On-The-Go, said Dave Podsiadlo, marketing manager for USB products at Cypress.
"If you take all the products that Cypress has in production, plus those in production or development at ScanLogic, we've really got the USB space covered now ," said Podsiadlo. "This is a complementary fit for us."
ScanLogic has two embedded host lines in production and is developing additional embedded host and mobile host products, Podsiadlo said. ScanLogic's products are designed for use in PDAs, set-top boxes, digital cameras, Internet appliances, cellular phones and automotive communication systems.
"Cypress' technology, sales and manufacturing provides us an opportunity to expand our market share," said Israel Zilberman, ScanLogic president and CEO.
ScanLogic's 18 full-time employees are now Cypress employees and will remain in Burlington.