HAUPPAUGE, N.Y.--(BUSINESS WIRE)--SMSC (NASDAQ: SMSC), a leading semiconductor company creating valued connectivity ecosystems, today announced that it has acquired Wireless Audio IP B.V. (“STS”), a fabless designer of plug-and-play wireless solutions for consumer audio streaming applications, including home theater, headphones, LED TVs, PCs, gaming and automotive entertainment. Customers include many of the industry’s leading consumer and PC brands. STS’s robust, low latency digital audio baseband processor and integrated module solutions are highly complementary to SMSC’s Kleer® wireless audio products. Together, the STS and Kleer teams intend to collaborate on developing best-in-class baseband processor and audio networking solutions that allow end users to enjoy state-of-the-art entertainment in the home, in the car or on the go.
“We are excited about the expansion of SMSC’s wireless audio product portfolio with the acquisition of STS,” said Christine King, President & Chief Executive Officer of SMSC. “The growth potential in the wireless audio market is significant as this technology is no longer just a unique application for audio enthusiasts. With this technology, we are enabling a new experience with high quality, untethered digital stereo audio transmission when listening to music, watching movies on a PC or TV and for playing videogames. We believe we are well positioned to build our market position now that we have assembled the technology and talent of two of the industry’s leading designers of wireless audio.”
Founded in 2003, STS has developed patented custom audio processing technology that is universal and highly scalable from previous generations, creating easy and efficient design environments for customers. Its wireless platform has shipped in millions of units of customer product deployed in a wide array of consumer applications. STS is headquartered in Amsterdam, The Netherlands, with offices in Singapore and China.
SMSC expects Kleer and STS to contribute approximately $15 million in revenue in fiscal 2011 and the acquisitions are expected to be neutral to slightly accretive during SMSC’s current fiscal year 2011. Under terms of the share purchase agreement, SMSC paid $22 million in cash and additional cash payments of up to $3 million may occur upon achievement of certain performance goals. The acquisition closed on June 14, 2010.
