Skyworks Solutions Inc. announced a definitive agreement to purchase Avnera Corp., a private fabless semiconductor supplier and developer of analog system on chips (ASoC). Skyworks will pay $405 million in cash to Avnera's equity holders at closing, anticipated by September, with up to an additional $20 million if certain performance targets are exceeded over a 12-month post-closing period.
The acquisition of Avnera augments Skyworks’ position in wireless connectivity by adding ultra-low power analog circuits, which will enable smart interfaces using acoustic signal processing, sensors and integrated software. According to Skyworks, adding Avnerna will expand the company's addressable market by more than $5 billion, from applications such as AI speakers and microphones, virtual assistants, intelligent gaming controllers, wired and wireless headsets and in-dash vehicle systems.
At the heart of Avnera’s solutions are market-specific ASoCs that combine audio/voice analog circuits, highly efficient power management and custom hardware accelerators for smart acoustic signal processing and AI features. According to the companies, Avnera’s ASoCs achieve the highest level of integration in the industry and set a new performance standard for power consumption and footprint, protected by more than 100 issued and pending patents. Key Avnera customers are Harman, JBL, Panasonic, Philips, Pioneer, Polk, Samsung, Sennheiser, Sony, Vizio and Yamaha.
The transaction has been approved by the boards of directors of both Skyworks and Avnera. Skyworks expects the acquisition to be immediately accretive to diluted earnings per share excluding non-recurring acquisition-related charges and amortization of intangibles.
“Voice is increasingly becoming the primary interface for artificial intelligence and IoT applications. Skyworks’ acquisition of Avnera will enable us to capitalize on the rapid proliferation of audio functionality and its convergence with our advanced connectivity solutions. With Skyworks’ global sales channels, strong customer relationships and operational scale, we plan to leverage Avnera’s innovative product portfolio and systems expertise to increase our footprint in automotive, industrial, home automation, enterprise and high-end consumer markets. In short, this transaction perfectly complements Skyworks’ product roadmap and will be highly synergistic across a broader customer set.” — Liam Griffin, president and CEO of Skyworks
“We are extremely excited to be joining forces with Skyworks to offer customers complete system solutions for next-generation smart interface applications. Both companies share a vision of enabling ubiquitous, always-on communications through highly customized designs. Together, we can develop, deliver and rapidly scale audio products with unprecedented integration and performance for the increasingly connected wireless world.” Manpreet Khaira, chairman, president and CEO of Avnera