Semtech Corp. announced that it acquired Cycleo SAS and all of its assets, related companies and operations. Headquartered in Grenoble, France, privately-held Cycleo develops IP for wireless long-range semiconductor products used in smart metering and other industrial and consumer markets. Cycleo technology will be incorporated in future Semtech RF platforms that need to deliver extended range at lower cost and lower power.
“We are very excited to have Cycleo become a part of Semtech,” stated Mohan Maheswaran, President and Chief Executive Officer of Semtech. “Cycleo’s IP portfolio is highly complementary to Semtech’s product roadmap, especially in the fast-growing Energy Control, Security and Asset Management markets. 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 reduce the infrastructure costs.”
In a joint statement, Cycleo senior executives Francois Sforza and François Hede and the company founders noted: “We are thrilled to be joining Semtech, whose leadership in the high-end wireless and sensing business was the best possible fit for Cycleo technology. The Cycleo IP product line complements particularly well Semtech’s current offering and will bring customers a unique set of high-end, digitally enhanced wireless solutions.”
Under the terms of the agreement, Semtech paid the stockholders of Cycleo $5 million in cash at closing. The stockholders will be able to earn up to an additional $16 million in cash based on the achievement of revenue and operating profit goals over the next four years. The transaction was funded from Semtech’s existing international cash reserves. Semtech estimates the transaction will have no material impact to earnings in its current fiscal year.