Entering Connected Device Market Through RedPine Signals Acquisition
Asset Purchase Agreement for Ultra-Low-Power Wi-Fi and IP Portfolio Completed

Silicon Labs is acquiring RedPine Signals' Wi-Fi and Bluetooth business, Hyderabad development center in India, and patent portfolio to advance into the IoT wireless technology field.
Tyson Tuttle, CEO of Silicon Labs, stated, "The asset purchase agreement to acquire RedPine Signals' ultra-low-power Wi-Fi and Bluetooth products and intellectual property (IP) portfolio for $308 million is in final stages. By adding IoT wireless technology products to our global sales and distribution channels, we can provide more opportunities for customers seeking rapid market entry with connected devices supporting Wi-Fi functionality in smart home and IIoT commercial markets."

Wi-Fi 6 (802.11ax) is the latest Wi-Fi standard designed to meet the requirements of low power consumption, performance, security, and interoperability demanded by IoT environments where hundreds or thousands of connected devices are deployed.

Through this acquisition, Silicon Labs not only accelerates its roadmap for Wi-Fi 6 semiconductors, software, and solutions, but also enables technology development for Bluetooth Classic IP (Bluetooth EDR) for audio applications including wearables, hearables, voice assistants, and smart speakers.

By utilizing specialized talent at the design center located in Hyderabad, India, spanning approximately 200 square meters, Silicon Labs can conduct faster and more efficient research and development.

Through this transaction, Silicon Labs expects approximately $20 million in incremental annual revenue based on FY2020, with IoT revenue growth rate improving to levels comparable to gross margins. In the second half of 2021, non-GAAP earnings per share (EPS) is expected to increase while non-GAAP operating expenses (OPEX) are anticipated to add approximately $15 million annually.

Currently, the boards of both companies and RedPine Signals shareholders have approved the acquisition agreement, and the transaction is expected to close in the second quarter subject to customary closing conditions and regulatory requirements.

Venkat Mattela, CEO of RedPine Signals, stated, "Over the past 20 years, RedPine has developed differentiated ultra-low-power multi-protocol SoCs based on OFDM and MIMO system research. Ultra-low-power Wi-Fi 6 will be a key wireless technology for connectivity in IoT devices going forward."

J.P. Morgan Securities participated in this transaction as the exclusive financial advisor to RedPine Signals.