Semtech buys French IP developer

March 12, 2012 // By EE Times
Analog and mixed-signal chip vendor Semtech Corp., has acquired Cycleo SAS, a developer of IP for wireless long-range semiconductors used in smart meters, and all of its assets, in a deal worth up to $21 million in cash.

Technology from Cycleo, based in Grenoble, France, will be incorporated into future Semtech RF platforms that need to deliver extended range at lower cost and lower power, Semtech (Camarillo, California) said.

"Cycleo's IP portfolio is highly complementary to Semtech's product roadmap, especially in the fast-growing energy control, security and asset management markets," said Mohan Maheswaran, president and CEO of Semtech, in a statement. "Associating our high-sensitivity, low-power transceiver technology with the Cycleo long-range IP allows Semtech to create disruptive products, enabling new long-range applications that drastically reduce the infrastructure costs."

Under the terms of the agreement, Semtech said it paid the stockholders of Cycleo $5 million in cash at closing. The stockholders will be able to earn up to an additional $16 million in cash based on the achievement of revenue and operating profit goals over the next four years, Semtech said. The transaction was funded from Semtech's existing international cash reserves, the company said.

Semtech said it estimates that the transaction will have no material impact to earnings in its current fiscal year.