Skyworks Solutions\u00a0has announced the acquisition of\u00a0Avnera Corporation, a leading developer of Analog System on Chips (ASoCs). The acquisition of Avnera, also a private fabless semiconductor supplier, augments Skyworks\u2019 leadership in wireless connectivity by adding ultra-low power analog circuits to enable smart interfaces via acoustic signal processing, sensors and integrated software. Once the\u00a0transaction is complete, Skyworks will expand its addressable market by over\u00a0$5 billion.\u00a0Target\u00a0applications include AI speakers\/microphones, virtual assistants, intelligent gaming controllers and vehicle in-dash systems as well as wired\/wireless headsets.<\/p>\n
According to\u00a0Liam K. Griffin, President and CEO, Skyworks, Voice is increasingly becoming the primary interface for artificial intelligence and\u00a0Internet of Things\u00a0applications. The acquisition of Avnera will enable Skyworks to capitalize on the rapid proliferation of audio functionality and its convergence with their advanced connectivity solutions. With its global sales channels, strong customer relationships and operational scale, the company plans to leverage Avnera\u2019s innovative product portfolio and systems expertise to increase footprint in automotive, industrial, home automation, enterprise and high-end consumer markets.<\/p>\n
At the heart of Avnera\u2019s system solutions are market-specific ASoCs that combine breakthrough audio\/voice analog circuits, highly efficient power management and custom hardware accelerators for smart acoustic signal processing\/AI features. The ASoCs achieve the highest level of integration in the industry and set a new performance watermark from a power consumption and footprint standpoint \u2500 all underpinned by more than 100 issued and pending patents. Key Avnera customers include Harman, JBL,\u00a0Panasonic, Philips, Pioneer,\u00a0Polk,\u00a0Samsung, Sennheiser,\u00a0Sony,\u00a0Vizio\u00a0and\u00a0Yamaha.<\/p>\n
Skyworks\u00a0will pay\u00a0$405 million\u00a0in cash to\u00a0Avnera\u00a0equity holders at closing with up to an additional\u00a0$20 million\u00a0if certain performance targets are exceeded over a 12-month post-closing period. The transaction has been approved by the boards of directors of both Skyworks and Avnera and is anticipated to close by\u00a0September 2018, subject to customary closing conditions. Excluding any non-recurring acquisition-related charges and amortization of intangibles, Skyworks expects the acquisition to be immediately accretive to diluted earnings per share.<\/p>\n