Leading MEMS solution vendor MEMSIC will acquire selected product lines of Crossbow Technology based on a recently signed Asset Purchase Agreement. The eKo business, Wireless Sensor Network (WSN) ‘Mote’ and the non-military part of the Inertial Systems business portfolio are included in this acquisition. The acquisition’s purchase price is $18 million in cash. This price is non-dilutive for the shareholders of MEMSIC. The acquisition will be closed depending on certain conditions.
The acquisition will result in strategic margin growth and incremental revenue for MEMSIC, besides improving its marketing, sales and engineering capabilities. MEMSIC has formulated its long-term strategy to widen its products range and improve its sensor solution and integration capabilities.
Crossbow Technology’s CEO and President Mike Horton revealed that he shares a common vision with MEMSIC’s CEO and President Dr. Yang Zhao for sensor solution business in the future. He added that Crossbow has been focusing for a decade on innovations relating to utilization of a wide range of MEMS sensor technologies. He explained that these innovations, along with manufacturing excellence and powerful sensor technology platform of MEMSIC will trigger considerable new business options world over for MEMSIC in consumer market, commercial airspace, automotive and industrial segments.
Dr. Yang informed that the market demand for total product solutions dictated the acquisition of the product portfolio that will offer global class system integration technologies to the customers of MEMSIC. He added that the new generation wireless and inertial module products of Crossbow will cater for the requirements of the increasing customer base of MEMSIC. He explained that the patented and enhanced inertial navigation algorithms of Crossbow will meet the requirements of the mobile phone customers of MEMSIC for enhanced location-based services (LBS) and navigation functions for future smart-phones.