Company Is Now a One-Stop-Shop for Wireless ICs, Modules, Software and Solutions for the Internet of Things
AUSTIN, TX and ESPOO, Finland –- Silicon Labs announces the acquisition of Bluegiga Technologies Oy. A privately held company based in Espoo, Finland, Bluegiga is one of the fastest growing independent providers of short-range wireless connectivity solutions and software for the IoT. Bluegiga’s wireless portfolio includes ultra-low-power Bluetooth® Smart, Bluetooth Classic, and Wi-Fi modules, as well as software stacks, development tools and software development kits (SDKs) for a multitude of applications in the industrial automation, consumer electronics, audio, automotive, retail, residential, and health and fitness markets.
This strategic acquisition significantly expands Silicon Labs’ wireless hardware and software solutions for the IoT. Bluegiga’s market-proven Bluetooth and Wi-Fi modules, software stacks and development tools complement Silicon Labs’ 802.15.4 ZigBee® and Thread mesh networking software, ultra-low-power sub-GHz solutions, and wireless MCU and transceiver product offerings. The combined wireless connectivity portfolio and development ecosystem will enable Silicon Labs to address a broader range of market opportunities and customer needs. Together, Silicon Labs and Bluegiga offer customers a “one-stop-shop” source of standards-based wireless connectivity solutions including high-performance, long-range and ultra-low-power options.
“With Silicon Labs’ wireless, microcontroller and sensor portfolios gaining considerable traction in the IoT markets, the timing of this acquisition couldn’t be better,” said Tyson Tuttle, CEO of Silicon Labs. “Bluegiga’s wireless modules and software stacks round out our wireless portfolio and complement our IoT solutions. The addition of Bluegiga wireless modules gives us new ways to deliver simplicity to our customers, enabling developers to easily add wireless connectivity to their designs.”
Following the acquisition, Silicon Labs will continue to operate in Espoo, Finland, as a center of excellence for wireless hardware and software technology development. The company will continue to develop, market and support a complete portfolio of Bluetooth and Wi-Fi module products and software stacks for customers worldwide.
“The Bluegiga team is excited to join forces with Silicon Labs,” said Riku Mettälä, vice president of product creation at Bluegiga. “We truly share a common vision of enabling versatile, cost-effective and streamlined wireless connectivity solutions for a wide range of applications, from the connected home to industrial IoT to consumer and health and fitness devices. Together, our wireless development teams will drive innovation in the IoT market, and our unified solutions will give customers a rich choice of wireless platforms for connected devices.”
Terms and Guidance
Silicon Labs completed the acquisition of Bluegiga Technologies Oy on January 30, 2015. Under the agreement, Bluegiga investors received approximately $61 million in cash. The acquisition was funded from Silicon Labs’ balance sheet cash resources and required no borrowing. Bluegiga is expected to contribute approximately $25 million to $28 million in revenue in 2015, and Silicon Labs expects the acquisition to be accretive to 2015 non-GAAP earnings. Additional financial details and guidance will be provided in Silicon Labs’ fourth quarter earnings call scheduled for February 4, 2015.