MANHASSET, N.Y. MIPS Technologies, Inc. has acquired privately-held Chipidea Microelectronica S.A. (Lisbon, Portugal) for $147 million in cash.
The Portuguese company, whose annual revenue was $32.8 million in the quarter ending June 30, supplies analog and mixed-signal IP for the wireless, digital consumer and connectivity markets.
Despite the complexity of analog technologies and the risky nature of the intellectual property business in general, Chipidea has been a rising star in the design IP market. Chipidea's revenue grew at a compound annual rate of 38 percent between 2000 and 2006.
The acquisition of Chipidea will effectively make MIPS "the second largest design IP vendor" in the world, after ARM, John Bourgoin, president and CEO, told EE Times.
The integration of microprocessor and analog IP is a visible trend in system-chip development and the addition of Chipidea's analog IPs to its portfolio is a move by MIPS to strengthen its position and expand its customer base.
MIPS, thus far, has made "zero investment" in analog technologies, Bourgoin acknowledged. "That's why we think that this is such a nice fit."
MIPS chose Chipidea for two reasons: its strong customer base and its financial robustness. Moreover, two-thirds of MIPS' customer bases overlap with those of Chipidea. They include: Toshiba, Sharp, NXP Semiconductors, STMicroelectronics, Zoran, Qualcomm, Texas Instruments and others.