Semtech Acquires Wireless Long Range IP Provider Cycleo
Complements and expands Semtech's existing long-range low-power RF
Expands served addressable market in industrial and home automation
CAMARILLO, Calif.--(BUSINESS WIRE)--
Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and
mixed-signal semiconductors, today announced 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
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.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are statements other than historical information or
statements of current condition and relate to matters such as future
financial performance, future operational performance, the anticipated
impact of specific items on future earnings, and Semtech's and Cycleo's
plans, objectives and expectations, including but not limited to
Semtech's plans, objectives and expectations with respect to Cycleo and
its business, and the closing of the proposed transaction. These
forward-looking statements are identified by the use of such terms and
phrases as "intends," "goal," "estimate," "expect," "project," "plans,"
"anticipates," "should," "will," "designed to," "believe," and other
similar expressions which generally identify forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that could cause actual results and events to differ
materially from those projected. Important factors that could cause
actual results to differ materially include, but are not limited to: the
success of near and longer term integration efforts between the combined
companies, including efforts to integrate and combine Cycleo products
and technologies into Semtech products and technologies; unexpected
acquisition-related costs and expenses; competitive changes in the
market place applicable to the products of Cycleo, as those products may
be incorporated into existing products of Semtech, including, but not
limited to the pace of growth or adoption rates of applicable products
or technologies, shifts in focus among target customers, and other
comparable changes in projected or anticipated markets; the depth,
extent and duration of current and anticipated worldwide economic
uncertainty, at both a macro level, and as it impacts both Semtech's and
Cycleo's historical products, industry, and market sector, as well as
those of Cycleo's following closing of the proposed transaction; and
Semtech's ability to forecast and achieve anticipated earnings in light
of continuing economic uncertainty, including estimates applicable to
Cycleo, as well as resulting from the integration of Cycleo's financial
performance and results into Semtech's full financial results.
Additionally, forward-looking statements should be considered in
conjunction with the cautionary statements contained in the "Risk
Factors" section and elsewhere in Semtech's Annual Report on Form 10-K
for the fiscal year ended January 30, 2011 and in Semtech's other
filings with the SEC.
Semtech Corporation is a leading supplier of analog and mixed-signal
semiconductors for high-end consumer, computing, communications and
industrial equipment. Products are designed to benefit the engineering
community as well as the global community. The company is dedicated to
reducing the impact it, and its products, have on the environment.
Internal green programs seek to reduce waste through material and
manufacturing control, use of green technology and designing for
resource reduction. Publicly traded since 1967, Semtech is listed on the
NASDAQ Global Select Market under the symbol SMTC. For more information,
Cycleo is a provider of innovative wireless solutions offering
long-range machine-to-machine communication to the wireless world. Based
upon a disruptive patented technology, Cycleo's solutions enable
unprecedented range without raising emission power at a very low cost.
Cycleo operates worldwide and provides Intellectual property and design
solutions to the electronic and semiconductor industry. For more
information visit: http://www.cycleo.net.
Semtech and the Semtech logo are marks of Semtech Corporation.
Sr. Manager Investor
Source: Semtech Corporation
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