In a groundbreaking move, SiTime Corporation has announced its exclusive agreement with Aura Semiconductor to acquire its clock products and license all of its clock IP. This strategic acquisition marks a significant milestone for SiTime, a leading provider of MEMS timing solutions, and is expected to have a profound impact on the semiconductor industry.
The deal, valued at a staggering $148 million in fixed payments, with additional earnouts capped at $120 million, is set to revolutionize SiTime’s product portfolio and further solidify its position as a key player in the timing solutions market. The transaction is slated to be finalized by the end of 2023, ushering in a new era of innovation and growth for the company.
Also read; U-Blox Unveils NEO-F10N: The Latest Advancement In Positioning Technology
Under the terms of the agreement, SiTime will gain exclusive, perpetual, and irrevocable rights to sell existing and new products based on Aura’s cutting-edge IP and clocking portfolio. The structured payment plan includes $36 million to be paid at the close of the deal, followed by $75 million in 2024 and $37 million in 2025, all of which are contingent upon product deliveries from Aura. Furthermore, the earnout payments will be tied to various multiples of revenue generated from the acquired products over the period from 2023 through 2028, showcasing SiTime’s commitment to long-term success and growth.
In a strategic move to bolster its global presence and enhance its engineering capabilities, SiTime will be establishing an office in Bengaluru, India, housing a dedicated engineering and support team. This expansion into the vibrant tech hub of Bengaluru underscores SiTime’s commitment to fostering innovation and leveraging top-tier talent to drive its future endeavors.
Also read: Keysight Technologies Launches N5186A MXG Vector-Signal Generator For 5G, LTE, And Wi-Fi Testing
The acquisition has been met with widespread anticipation and excitement within the industry, with experts lauding the move as a game-changer for SiTime and a testament to its forward-looking approach. The company’s decision to partner with Aura Semiconductor reflects its dedication to staying at the forefront of technological advancements and delivering unparalleled solutions to its customers.
Barclays, a renowned financial institution, played a pivotal role in facilitating the transaction, serving as the exclusive financial advisor to SiTime. Their expertise and guidance were instrumental in ensuring the successful completion of the acquisition, further underscoring the significance of this landmark deal.
Also read: Quectel’s RG620T 5G Module Receives FCC And PTCRB Certifications
With this transformative acquisition, SiTime is poised to redefine the landscape of timing solutions, setting the stage for a new era of innovation and growth. The company’s unwavering commitment to excellence and its strategic vision for the future are evident in this bold move, signaling a promising trajectory for SiTime and its stakeholders.
