Semtech Corporation (Nasdaq:SMTC) a leading supplier of high performance analog, mixed-signal semiconductors and algorithms, today announced the signing of a definitive agreement to acquire AptoVision Technologies Inc., a privately-held provider of uncompressed, zero-frame latency, Video over IP solutions addressing the exciting Pro AV market.
The acquisition is expected to add over 30 employees based in Montreal. AptoVision’s CEO, Kamran Ahmed, will join Semtech reporting to Gary Beauchamp, Executive Vice President and General Manager of Semtech’s Signal Integrity Products Group.
Under the terms of the purchase agreement, Semtech will acquire the outstanding equity interests of AptoVision for a cash purchase price of $28 million and additional contingent consideration of up to $47 million subject to achieving certain future financial goals. Semtech expects to fund the purchase price using its current cash assets.
High-definition (HD) and ultra-high-definition (UHD) video are proliferating in all aspects of today’s life from public places such as airports and rail stations to retail, sports venues, corporate, and academia. HD and UHD video offer an enhanced, immersive experience, and AptoVision’s BlueRiver™ technology addresses the need for flexible software defined AV that can be carried over low-cost IP networks without compression or latency which is critical to support these applications.
Software Defined Video over Ethernet (SDVoE™) is the only approach to Video over IP based on an interoperable ecosystem of Pro AV products and companies, and AptoVision’s BlueRiver™ technology is the underlying technology driving SDVoE applications and ecosystem. The technology is being quickly adopted into Pro AV applications, and several tier one companies are launching SDVoE-based products.
The unique combination of AptoVision’s advanced algorithms for real-time, full bandwidth video transmission over IP networks, and Semtech’s industry leading high-speed signal integrity and chip development expertise is expected to enable SDVoE to accelerate this natural progression in the evolution of video transport.
Gary Beauchamp told us “Semtech is a leader in the SDI broadcast video market and with the acquisition of AptoVision’s pioneering BlueRiver technology for Video over IP, we are further expanding our opportunity into the fast growing Pro AV market and solidifying our commitment to the video industry.”
The acquisition, subject to customary closing conditions, is expected to close during the Company’s current fiscal quarter. Semtech does not expect the acquisition to have any material impact to the financial outlook for its second quarter of fiscal year 2018 that was provided on May 31, 2017. The Company expects the deal to be neutral to its fiscal year 2018 non-GAAP earnings and to be accretive to its fiscal year 2019 non-GAAP earnings.
Semtech Corporation is a leading supplier of high performance analog, mixed-signal semiconductors and algorithms for high-end consumer, enterprise computing, communications, and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC.