|[June 07, 2013]
Silicon Labs to Acquire Energy Micro, a Leader in Low Power ARM Cortex-Based Microcontrollers and Radios
AUSTIN, Texas & OSLO, Norway --(Business Wire)--
Labs (Nasdaq: SLAB), a leader in high-performance, analog-intensive,
mixed-signal ICs, today announced that it has signed a definitive
agreement to acquire Energy
Micro AS. Based in Oslo, Norway, the late-stage privately held
company offers the industry's most power-efficient portfolio of 32-bit
microcontrollers (MCUs) and is developing multi-protocol wireless RF
solutions based on the industry-leading ARM (News - Alert)® Cortex-M architecture.
Energy Micro's energy-friendly MCU and radio solutions are designed to
enable a broad range of power-sensitive applications for the Internet of
Things (IoT), smart energy, home automation, security and portable
This strategic acquisition accelerates Silicon Labs' growth
opportunities and positions the company as the foremost innovator in
energy-friendly embedded solutions. The growth of the IoT market,
coupled with continued deployment of smart grid and smart energy
infrastructure, is driving strong demand for energy-efficient processing
and wireless connectivity technology to enable connected devices in
which low-power capabilities are increasingly important. Industry
experts predict that the number of connected devices for the IoT will
top 15 billion nodes by 2015 and reach 50 billion nodes by 2020.
Energy Micro's portfolio complements Silicon Labs' 32-bit Precision32™
MCU, Ember® ZigBee® and sub-GHz wireless products and targets a growing
embedded market. The acquisition greatly expands Silicon Labs' MCU
portfolio, adding nearly 250 ARM-based EFM32 Gecko MCU products ranging
from extreme-low-power, small-footprint MCUs based on the ARM Cortex-M0+
core to higher-performance, energy-friendly MCUs powered by the
Cortex-M4 core capable of DSP and floating-point operations. The
acquisition is expected to enhance Silicon Labs' radio portfolio with
the addition of Energy Micro's ultra-low-power EFR Draco radio products.
These versatile wireless transceivers and system-on-chip (SoC) devices
will support frequency bands ranging from sub-GHz to 2.4 GHz and
multiple standard and proprietary protocols including Bluetooth Low
Energy (LE), 6LoWPAN, ZigBee, RF4CE, 802.15.4(g), KNX, ANT+ and
"Silicon Labs and Energy Micro share a complementary vision of a
greener, smarter, wirelessly connected world, and the foundation for
this combined vision is ultra-low-power technology enabled by each
company's innovative mixed-signal design," said Tyson Tuttle, president
and CEO of Silicon Labs. "This acquisition combines two proven leaders
in nano-power MCU and wireless SoC design into a formidable force that
will accelerate the deployment of energy-friendly solutions across the
Internet of Things and smart energy industries."
The company expects the addition of Energy Micro's EFM32 Gecko MCUs and
EFR Draco Radios, ultra-low-power technology expertise, energy-aware
Simplicity development tools, and world-class design and applications
teas will drive the rapid expansion of its Broad-based business.
Silicon Labs intends to apply these complementary embedded technology
platforms and expertise to enable the industry's most energy-efficient
solutions for the burgeoning IoT and smart energy markets, as well as
the proliferation of battery-powered portable electronics devices. In
addition, both companies' 32-bit MCU and wireless products leverage the
same ARM Cortex-M architecture, which is expected to accelerate the
combined roadmap and support rapid adoption among the existing customer
"The Energy Micro team is excited to join Silicon Labs," said Geir
Førre, president and CEO of Energy Micro, who after the closing, is
expected to become vice president and general manager of Silicon Lab's
Energy-Friendly Microcontroller and Radio business unit, based in Oslo.
"Silicon Labs' excellent resources and technology will help the combined
company develop new products and gain market share more quickly. The
combination of our broad portfolios of energy-friendly MCU, radio,
wireless connectivity and sensing solutions will redefine 'ultra-low
power' for the embedded industry. Our unified solutions will give
customers a large choice of 32-bit microcontroller and sub-GHz, ZigBee
and Bluetooth LE connectivity options based on the most energy-efficient
ARM platforms in the industry," he said.
Terms and Guidance
Under the agreement, the shareholders of Energy Micro will receive an
up-front payment of $115 million in cash, plus approximately $55 million
in deferred and earn-out consideration. The acquisition is being funded
from balance sheet cash resources and will require no borrowing. Energy
Micro is expected to contribute approximately $7 million in revenue in
the second half of 2013. Anticipated growth is expected to allow the
transaction to be accretive on a non-GAAP basis by the end of 2014. The
boards of each company have approved the acquisition, which awaits the
satisfaction of customary closing conditions. The deal is expected to
close in July 2013. Additional financial details and guidance will be
provided in the Silicon Labs' second quarter earnings call planned for
July 25, 2013.
Silicon Labs will be hosting a conference call to discuss the
acquisition today, June 7 at 7:30 am Central time. Participants can
access the webcast from the Investor Relations section of the company
website at www.silabs.com.
A replay will be available after the call on the investor page of the
website listed above or by calling (855) 859-2056 or (404) 537-3406
(international) and entering passcode 88866324. The replay will be
available through June 21, 2013.
About Energy Micro
Energy Micro, based in Oslo Norway, develops and markets the world's
most energy-friendly microcontroller and radio products based on ARM
Cortex-M processor cores. Consuming a quarter of the energy of competing
products, the company's award-winning EFM32 Gecko MCUs and EFR4 Draco
radios target energy-sensitive applications across the embedded industry
and are supported by Energy Micro's developer-friendly Simplicity
Studio, which can reduce embedded system development times by a half.
The company was founded in 2007 by experienced semiconductor
professionals with previous expertise from Chipcon, Texas Instruments,
Atmel (News - Alert) and Nordic Semiconductor. Energy Micro is backed by leading Nordic
investors Northzone Ventures and Investinor. For more information about
Energy Micro, visit www.energymicro.com.
About Silicon Labs
Silicon Labs is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs' diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size
and power consumption. For more information about Silicon Labs, please
This press release contains forward-looking statements based on Silicon
Labs' current expectations. The words "believe," "estimate," "expect,"
"intend," "anticipate," "plan," "project," "will," "expanding,"
"growing," and similar phrases as they relate to Silicon Labs or Energy
Micro are intended to identify such forward-looking statements. These
forward-looking statements reflect the current views and assumptions of
Silicon Labs and are subject to various risks and uncertainties that
could cause actual results to differ materially from expectations. Among
the factors that could cause actual results to differ materially from
those in the forward-looking statements are the following: risks related
to the successful completion of the development and implementation of
Energy Micro's technology, risks that the acquisition may not yield the
expected benefits due to the failure to properly integrate the acquired
business and employees; risks that the acquired business' products and
processes under development may fail to achieve market acceptance; risks
of disputes regarding the acquired business and intellectual property;
risks that the performance of Silicon Labs' existing business may not
offset the dilutive effects of the acquisition; risks associated with
the competitive and cyclical nature of the semiconductor industry and
other factors that are detailed in Silicon Labs' filings with the SEC (News - Alert).
Silicon Labs disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Note to editors: Silicon Laboratories (News - Alert), Silicon Labs and the Silicon
Labs logo are trademarks of Silicon Laboratories Inc. All other product
names noted herein may be trademarks of their respective holders.
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