Semiconductor manufacturer Semtech Corp. acquired a French company serving the industrial and consumer markets.
The acquisition of Cycleo SAS is the second buyout this year by Camarillo-based Semtech. In January the company bought Gennum Corp., headquartered in Canada, in a deal valued at $500 million.
Semtech will pay Cycleo shareholders $5 million in cash at closing. The company may pay out an additional $16 million based on revenue and operating profit goals over the next four years.
Cycleo makes semiconductors used in smart metering and other industrial and consumer markets. Semtech will incorporate the Cycleo technology into its radio frequency platforms.
"Cycleo's IP portfolio is highly complementary to Semtech's product roadmap, especially in the fast-growing energy control, security and asset management markets,” Semtech President and CEO Mohan Maheswaran said in a prepared 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 reduces the infrastructure costs."
Mark R. Madler