Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

SiTime Corporation Acquires Aura Semiconductor’s Clock Products And IP

- Advertisement -

With this move, SiTime solidifies its position as a market leader in precision timing solutions, with the guidance of Barclays as its exclusive financial advisor.

SiTime Corporation has made a significant business move by entering into an exclusive agreement with Aura Semiconductor to acquire its clock products and secure the licensing rights to all its clock intellectual property (IP). This transaction, entirely in cash, involves fixed payments amounting to $148 million, complemented by earnouts with an upper limit of $120 million. The deal is on track to conclude by the close of 2023.

SiTime’s CEO and Chairman, Rajesh Vashist, shared the company’s ambitious vision, stating, “SiTime’s vision is to transform all categories of the $10 billion timing market.” Having focused on addressing complex issues in the oscillator category since its IPO in 2019, the company has seen remarkable growth over the past four years, expanding its product portfolio from 60 to 150 unique offerings. The price of its highest-value oscillator has surged tenfold during this period. With this acquisition, it is extending its expertise to the clock category, immediately adding 20 best-in-class clocks and promising an additional 20 by the end of 2024.

- Advertisement -

The company mentioned the financial aspect of the deal that they have leveraged their strong balance sheet to accelerate by several years their clocking revenue while also increasing their oscillator revenue. The acquired clocks boast gross margins that surpass the company’s corporate targets and are compatible with the company’s Elite TCXO and Epoch OCXO families. Before this agreement, customers had to engage with separate clock and oscillator vendors. The company is now uniquely positioned to offer both categories as standalone products or engineered to work optimally in tandem. This comprehensive precision timing product offering caters to the company’s core markets of communications, data centres, and artificial intelligence, solidifying its position as the sole provider with a complete and differentiated precision timing product line.

Under the terms of the agreement, the company gains exclusive, perpetual, and irrevocable rights to sell existing and new products based on Aura’s IP and clocking portfolio. Of the fixed payments, $36 million will be disbursed upon closing, with $75 million in 2024 and $37 million in 2025, all contingent on product deliveries from Aura. The earnout payments will be determined by various revenue multiples generated from the acquired products between 2023 and 2028. Along with this transaction, the company is establishing an office in Bengaluru, India, which will house an engineering and support team.

Barclays played a pivotal role in the deal, acting as the company’s exclusive financial advisor. This acquisition underscores the company’s commitment to innovation and market leadership in precision timing solutions, paving the way for continued growth and success in the rapidly evolving technology landscape.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Element14 Unveils Murata’s UWB And LoRa Modules 

0
These modules offer high location accuracy, compact design, and integrated MCU options, making them ideal for a wide range of IoT applications, including asset...

Indian Smartphone Market Grows 1% in Q2 2024

0
Owing to diminished seasonal demand and extreme weather conditions in certain regions, the Indian smartphone market saw a humble 1% growth in the second...
Saurav Kumar Singh, the Founder of Elecbits

“We Aim To Attract Companies From The US And UK To Manufacture In India...

0
In a discussion with EFY’s Nitisha, Saurav Kumar Singh, the Founder of Elecbits, elaborates on its design and manufacturing procedures. Additionally, he highlights a...

Buzz

ChipEdge Appoints Damodaran Subramanian As New CEO

0
Eyeing to strengthen leadership capabilities as the company plans expansion, Indian semiconductor producer ChipEdge designated Damodaran Subramanian as CEO. Last week, Bengaluru-based semiconductor company ChipEdge...

India’s PM Surya Ghar Scheme Accelerates Solar Energy Adoption

0
The PM Surya Ghar Scheme, a pivotal component of India's strategy for universal access to power, aims to install solar rooftops on one crore...

Airbus And Tata Launch ‘Made in India’ Helicopter

0
With an aim to increase its global footprint and bolster the Indian aerospace ecosystem—Airbus partners with Tata Group to launch India's first H125 helicopter...

Important Sectors

ChipEdge Appoints Damodaran Subramanian As New CEO

0
Eyeing to strengthen leadership capabilities as the company plans expansion, Indian semiconductor producer ChipEdge designated Damodaran Subramanian as CEO. Last week, Bengaluru-based semiconductor company ChipEdge...

India’s PM Surya Ghar Scheme Accelerates Solar Energy Adoption

0
The PM Surya Ghar Scheme, a pivotal component of India's strategy for universal access to power, aims to install solar rooftops on one crore...

Airbus And Tata Launch ‘Made in India’ Helicopter

0
With an aim to increase its global footprint and bolster the Indian aerospace ecosystem—Airbus partners with Tata Group to launch India's first H125 helicopter...

Raja Manickam Secures $5 Million For Ivp Semiconductor Startup

0
Eyeing local innovations in chip production, semiconductor industry veteran Raja Manickam secured a $5 million fund for startup iVP Semi to develop testing facilities...

Indian Smartphone Market Grows 1% in Q2 2024

0
Owing to diminished seasonal demand and extreme weather conditions in certain regions, the Indian smartphone market saw a humble 1% growth in the second...

Manufacturing

Mother-board-electronic-components

MeitY Announces $350 Billion PLI Plan To Boost Electronics Sub-Assemblies

0
MeitY announces allocation of $350 billion for a new PLI scheme, aiming to make India a global hub for electronics components and boost exports...

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

HPL Electric Teams with G Ramway To Make Relay Switches

0
Eyeing India’s self-sufficiency goals, smart meter manufacturer HPL Electric has inked a deal with China-based G-Ramway Technology to boost local manufacturing off switches. Last week,...

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Cooper Standard Launches Ecoflow For Electric Vehicles

0
This scalable fluid control technology, which can be used across various powertrains, is particularly effective for managing the intricate glycol thermal needs of fully...