The acquisition, says Skyworks, will augment its wireless connectivity products portfolio by adding ultra-low-power analog circuits to enable smart interfaces via acoustic signal processing, sensors, and integrated software, and expand its addressable market by over $5 billion. Target applications include AI speakers/microphones, virtual assistants, intelligent gaming controllers, and vehicle in-dash systems, as well as wired/wireless headsets.
“Voice is increasingly becoming the primary interface for artificial intelligence and Internet of Things applications," says said Liam K. Griffin, president and chief executive officer of Skyworks. "Skyworks' acquisition of Avnera will enable us to capitalize on the rapid proliferation of audio functionality and its convergence with our advanced connectivity solutions."
"With Skyworks' global sales channels, strong customer relationships. and operational scale, we plan to leverage Avnera's innovative product portfolio and systems expertise to increase our footprint in automotive, industrial, home automation, enterprise and high-end consumer markets," says griffin. "In short, this transaction perfectly complements Skyworks' product roadmap and will be highly synergistic across a broader customer set."
Avnera provides market-specific ASoCs that combine audio/voice analog circuits, highly efficient power management, and custom hardware accelerators for smart acoustic signal processing/AI features. Key Avnera customers include Harman, JBL, Panasonic, Philips, Pioneer, Polk, Samsung, Sennheiser, Sony, Vizio, and Yamaha.
Skyworks will pay $405 million in cash to Avnera equity holders at closing with up to an additional $20 million if certain performance targets are exceeded over a 12-month post-closing period. The transaction has been approved by the boards of directors of both Skyworks and Avnera and is anticipated to close by September 2018, subject to customary closing conditions. Skyworks says that it expects the acquisition to be immediately accretive to diluted earnings per share.