SMSC buys audio networking SoC firm
5/19/2011 5:57 PM EDT
SAN FRANCISCO—Mixed-signal chip maker Standard Microsystems Corp. Thursday (May 19) said it acquired networked audio technology provider BridgeCo Inc. in a cash deal worth up to $67.5 million.
Under terms of the agreement, SMSC ((Hauppauge, N.Y.) paid $40 million in cash and will make additional payments of up to $27.5 million upon achievement of certain performance goals, the company said. The deal closed Thursday, the company said.
BridgeCo is headquartered in El Segundo, Calif., with offices in India and Japan. The company employs about 100 people.
BridgeCo's JukeBlox technology connects tablets, smartphones, PCs, Macs and other consumer electronics products to audio entertainment. According to SMSC, BridgeCo offers the industry's only system-on-a-chip and software design kit for networked audio.
BridgeCo's line of ARM-based multi-core network media processors integrate a system controller, real-time audio processing engine, DRM security processor, network I/O processor and a WiFi MAC/Baseband to enable high-bandwidth wireless audio streaming, the company said.
According to ABI Research, networked audio devices will grow from 3.7 million units in 2009 to more than 56 million by 2015, with revenue growing to more than $10 billion by 2015.
For the three months ended March 2011, BridgeCo's revenue was $2.2 million. Revenue for the three months ending June 30 is expected ot be about $5 million, SMSC said.