SAN FRANCISCO—Silicon Laboratories Inc. said Monday (Nov. 23) it acquired privately-held Telegesis ltd., a U.K.-based supplier of wireless mesh networking modules, for roughly $20 million.
Telegesis (High Wycombe, England), founded in 1998, exclusively uses Silicon Labs’ ZigBee technology in its module products, which are deployed in smart meters, USB adapters and gateways for smart energy applications. The firm provides modules to many of the world’s top smart metering manufacturers.
Silicon Labs (Austin, Texas) said the acquisition would accelerate the company’s roadmap for ZigBee and Thread-ready modules and enhance its ability to support customer needs.
Daniel Cooley, vice president of marketing at Silicon Labs, said in an interview that the Telegesis acquisition is consistent with the strategy Silicon Labs introduced in February when the company launched its Blue Gecko Bluetooth Smart product portfolio. That portfolio includes Bluetooth Smart modules that had been developed by Bluegiga, which Silicon Labs acquired earlier in February.
“A lot of customers want the ability to move from module to chip down SoC designs,” Cooley said. “We see a lot of the industry trending in this direction. We certainly aren’t the only company out there marketing and selling modules into the market.”
Cooley added that Silicon Labs has partnered with Telegesis for years. “We are very familiar with them,” he said. “They are a very strong player in the smart energy market in Europe, which we’ve been engaged in for more than a decade now. We’ve been very close for a long time. We know the team well. We know the market well.”
“The addition of Telegesis’s successful module business strengthens Silicon Labs’ position as the market leader in mesh networking solutions for the Internet of Things,” said James Stansberry, senior vice president and general manager of Silicon Labs’ IoT products, in a statement. Stansberry said the combination of Telegesis modules and Silicon Labs mesh networking SoCs, 802.15.4 software stacks and wireless development tools would provide customers with “a seamless migration path from modules to SoCs and from ZigBee to Thread-based networks.”
The market for ZigBee modules is growing rapidly. According to market research firm IHS Technology, 20% of all ZigBee PRO integrated circuits shipping today are used in modules, and ZigBee module shipments are expected to grow at a compound annual rate of 24.6 percent between now and 2019.
Silicon Labs said it completed the acquisition of Telegesis Nov. 20. About 20 employees will join Silicon Labs as the result of the acquisition, Silicon Labs said. The company expects Telegesis to contribute $8 million to $10 million to Silicon Labs’ revenue in fiscal 2016.