On August 6th, Skyworks signed a definitive agreement to acquire Avnera, a US analog system chip (ASoC) developer, established in 2004, for $405 million in cash. If the performance exceeds its performance target within 12 months after the acquisition, the acquisition amount will increase by an additional amount of up to 20 million US dollars. The transaction has now been approved by the board of directors of both companies and is expected to be completed in September.
At the heart of the Avnera system solution is the market-tailored ASOC, which combines audio/voice analog circuitry, efficient power management and custom hardware accelerators for intelligent acoustic signal processing/AI functions. ASoC is said to achieve the highest level of integration in the industry and provides a new benchmark for power and chip size for more than 100 published and pending patents. Major customers of Avnera include Harman, JBL, Panasonic, Philips, Pioneer, Polk, Samsung, Sennheiser, Sony, Vizio and Yamaha.
After the acquisition, Avnera's ultra-low-power analog circuit technology will enable Skyworks to implement intelligent interfaces through acoustic signal processing technology, sensors and integrated software, enhance Skyworks' technical capabilities in wireless connectivity, and expand the company's addressable market. The targeted applications include smart speakers, virtual assistants, smart game controllers and in-vehicle instrumentation systems, and wired/wireless headsets.
Skyworks President and CEO Liam K. Griffin said: "Voice is increasingly becoming the primary interface for artificial intelligence and IoT applications. Skyworks' acquisition of Avnera will enable us to combine advanced connectivity solutions to meet the rapidly growing market demand. With Skyworks' global sales channels, strong customer relationships and operational scale, we plan to leverage Avnera's innovative product portfolio and system expertise to increase our presence in the automotive, industrial, home automation, corporate and high-end consumer markets. Therefore, this transaction perfectly complements Skyworks' product roadmap and will achieve a high degree of synergy among a broader customer base."
“We are very pleased to work with Skyworks to provide our customers with complete system solutions for next-generation intelligent interface applications,” said Manpreet Khaira, Chairman, President and CEO of Avnera. “The two companies share a common vision of Customized design enables ubiquitous, always-on communication. We can jointly develop, deliver and rapidly scale audio products to deliver unprecedented levels of integration and performance for the growing wireless connectivity world."