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Adesto Acquires Dublin-Based S3 Semiconductors for USD 35m
Wednesday 16 May 2018

16 May 2018 - California, US-based semiconductor provider Adesto Technologies (NASDAQ: IOTS) has acquired Dublin-based mixed-signal and RF application specific integrated circuits (ASICs) provider S3 Semiconductors, the company said.
The transaction is valued at approximately USD 35m, with an additional earn-out provision based on certain milestones to the end of calendar year 2019.
Adesto financed the transaction with existing cash and a new credit facility in the amount of USD35 m. Concurrent with the close of the new credit facility, Adesto terminated its former credit facility with Western Alliance Bank, which included paying off an outstanding term loan with a principal amount owed of USD 12m.
The acquisition expands Adesto's portfolio of products and technologies with analog, mixed-signal and RF solutions and IP, and accelerates revenue and customer growth in communications and industrial IoT with immediate cross-selling opportunities and nominal customer overlap.
S3 Semiconductors will become a business unit of Adesto and will continue to operate under its current operating model across existing global sites, including its four design centres in Dublin, Cork, Prague and Lisbon.
Adesto Technologies is a provider of innovative application-specific semiconductors for the IoT era. The company's technology is used by more than 2,000 customers worldwide who are creating differentiated solutions across industrial, consumer, medical and communications markets.
S3 Semiconductors is a design partner of Arm Holdings. S3 Semiconductors designs advanced mixed-signal chips and manages every aspect of supplying production devices to customers.
Roth Capital is serving as financial advisor and placement agent to Adesto, and Menalto Advisors is serving as financial advisor to S3 Group.
Date Published: 16/05/2018
Target: S3 Semiconductors
Country: Ireland
Deal Size: 35m (USD)
Sector: Computer Hardware
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: Adesto Technologies