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Austin’s Silicon Labs plans $308M acquisition of California tech firm Redpine Signals

Date:12-Mar-2020

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Austin-based chipmaker Silicon Labs said Thursday that it is pursuing a $308 million deal to buy California-based Redpine Signals in what would be the company’s largest acquisition.

The company said it expects the deal to be finalized this year and to add about $20 million to its fiscal 2020 revenue.

Redpine Signals is a semiconductor company that makes products for wireless networks, including those used for the Internet of Things. Internet of Things, or IoT, is a technology term referring to non-computing devices, such as kitchen appliances or televisions, that are connected to the Internet.

Silicon Labs is a designer and manufacturer of semiconductors and other silicon devices. About 700 of its 1,500 employees are based at its downtown Austin headquarters. In recent years, the company has had a significant focus on its wireless chips, which other companies use to build Internet of Things products.

“The addition of these products into our worldwide sales and distribution network will drive further momentum in the smart home, industrial IoT and commercial markets for customers who want to get to market quickly with Wi-Fi enabled connected devices,” Silicon Labs CEO Tyson Tuttle said in a written statement.

Matt Johnson, Silicon Labs’ vice president of IoT products, said the acquisition will help the company stay at the forefront of innovations like Wi-Fi 6, which Johnson said will enable more IoT technologies in commercial and industrial applications.

“Although Wi-Fi 6 is still a nascent, emerging technology, we expect to see traction for it in the IoT market in years to come,” Johnson said.

Through the acquisition, Johnson said, Silicon Labs would add a large percentage of Redpine’s software and hardware engineers to its team, including about 200 employees who are part of a design center in Hyderabad, India.

“Silicon Labs will introduce key personnel into Redpine Signals’ management to help with the integration of people, processes, products and technologies,” he said.

Redpine Signals founder and CEO Venkat Mattela said the Wi-Fi 6 innovations that his company offers will be crucial to the development and success of future IoT devices.

“My team is excited to join Silicon Labs to help build a smarter, more connected world,” Mattela said in a written statement.