The two companies have signed a definitive agreement to combine and provide chips and software for the wearables, mobile and internet of things markets. Megachips has expertise in sensor hubs, Bluetooth radio and audio and video processing technologies. Under the terms of the deal SiTime will operate as a wholly-owned subsidiary of MegaChips.
"SiTime's founders, Markus Lutz and Dr. Aaron Partridge, started the company with a vision of developing game-changing MEMS and analog technology to revolutionize the $5 billion timing industry," said Rajesh Vashist, CEO of SiTime, in a statement. "Through innovation, passion and focus, we’ve successfully delivered on this vision. Today, SiTime is the overwhelming leader – we have 1000 customers, 250 million units shipped, major design wins in all electronics segments, and a roadmap that extends SiTime’s MEMS technology to all timing markets."
Akira Takata, President and CEO of MegaChips said that is company has an aggressive growth strategy with a vision to become one of the top ten fabless semiconductor companies through both organic growth and strategic acquisition. "MEMS components are fuelling the growth of the semiconductor industry. Through the acquisition of SiTime, MegaChips becomes a leader in MEMS. SiTime will help us expand our portfolio and diversify our customer base.
"As a founding investor in SiTime, Bosch recognized early on the tremendous vision and innovation behind SiTime’s approach to MEMS timing,” said Dr. Volkmar Denner, Chairman, Board of Management of Robert Bosch GmbH. “We have closely followed their success from a Silicon Valley startup to a revenue-generating company that sells to some of the world’s largest electronics companies. We are pleased that MegaChips is acquiring SiTime and we expect a bright future for the combined companies."
The deal is expected to close in November 2014, pending regulatory approvals and customary closing conditions.
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