SMSC acquires Symwave
11/15/2010 1:36 PM EST
SAN JOSE, Calif. - SMSC has made another acquisition. This time, the chip maker has acquired Symwave Inc., a USB 3.0 chip supplier.
SMSC had previously made a $5.2 million equity investment in Symwave, resulting in a total equity stake of 14 percent. SMSC also recently provided $3.1 million in bridge financing to Symwave.
Under terms of the new agreement, SMSC also agreed to make cash payments to Symwave shareholders as part of an earnout provision upon achievement of certain financial goals during calendar year 2011. Headquartered in Laguna Niguel, Calif., with design centers in San Diego and Shenzhen, China, Symwave has approximately 90 employees, of which over 60 are in Asia. The acquisition closed on Nov. 12, 2010.
End products based on Symwave’s storage controller were the industry’s first to achieve the USB-IF’s USB 3.0 certification in December 2009.
“This led to our initial investment in Symwave in 2009. With USB 3.0 now ready for mass deployment, SMSC is strengthening its market position through the addition of best-in-class USB 3.0 expertise to take advantage of this technological shift at the optimal time. We expect this IP will be broadly used throughout SMSC’s connectivity product portfolio,” said Christine King, president and CEO of SMSC, in a statement.
In September of 2009, SMSC bought Tallika Corp. Under terms of the acquisition, SMSC paid approximately $3.4 million. Tallika is expected to play a role in accelerating SMSC’s product roadmaps, including USB 3.0.
Late last year, SMSC invested $2 million in 3-D sensor maker Canesta Inc., which was recently acquired by Microsoft.
Earlier this year, SMSC acquired substantially all the assets and certain liabilities of Kleer Semiconductor Corp., a designer of high quality, interoperable wireless audio technology addressing headphones and earphones, home audio/theater systems and speakers, portable audio/media players and automotive sound systems.
In June, SMSC acquired Wireless Audio IP B.V. (STS), a fabless designer of plug-and-play wireless solutions for consumer audio streaming applications, including home theater, headphones, LED TVs, PCs, gaming and automotive entertainment.
In September, SMSC announced financial results for its second quarter of fiscal 2011, ended August 31. Total revenue for the second quarter of fiscal 2011 was $104.1 million, an increase of 7 percent sequentially, or an increase of 39 percent when compared to the same period in the prior year.
GAAP net income for the second quarter of fiscal 2011 was $12.9 million, or $0.57 per diluted share, compared to a GAAP net loss of $6.5 million or $0.30 per diluted share for the same period in the prior year.