Wednesday, January 26, 2011

Silicon Labs acquires SpectraLinear for $40M

AUSTIN, Texas, January 26, 2011 - Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal ICs, today announced the acquisition of Silicon Valley-based SpectraLinear, a late-stage private company offering integrated timing solutions. Silicon Labs acquired the talented SpectraLinear team and a complementary portfolio of programmable clock ICs for approximately $40 million.

SpectraLinear’s family of low-power, highly programmable and small-footprint silicon clocking solutions is optimized for consumer electronics and embedded applications such as portable media players, residential gateways and digital cameras. Similar to Silicon Labs’ approach in the middle and high end of the timing market, SpectraLinear leverages a high level of integration and programmability in its product architectures to address cost-sensitive, high-volume applications. The company’s customer base includes industry leaders in the consumer market including portable device, handset and communications gear makers.

SpectraLinear’s innovative clock products complement Silicon Labs’ existing timing product line, by adding a broad family of ICs that Silicon Labs believes will accelerate penetration of the approximately $500 million opportunity in high-volume applications.

“By offering strong product synergies, tier one customer alignment and an immediate footprint in the timing subsystem of consumer devices, this acquisition further establishes Silicon Labs as a one-stop timing solution provider,” said Mark Downing, vice president of strategy and business development. “We have established a successful timing portfolio organically in high-performance applications, more than doubling our timing revenue since 2008 to greater than 10 percent of our business. We believe our acquisition of CMOS-based MEMS resonator technology in 2010 followed by today’s acquisition of SpectraLinear will enable Silicon Labs to accelerate market share gains in the timing market.”

“This combination will allow us to leverage Silicon Labs’ greater resources and sales channel to reach a broader set of customers globally,” said Ilhan Refioglu, CEO of SpectraLinear. “We believe the product line synergy will allow us to hit the ground running and rapidly capitalize on new revenue opportunities.”

SpectraLinear is based in Santa Clara, California, with design centers in Bangalore, India, and Istanbul, Turkey. The acquisition will bring 19 patents issued or pending and a team of 44 employees to Silicon Labs. The acquisition is expected to be accretive to earnings, excluding the amortization of intangibles, in its first full quarter of operations in 2011.