Silicon Labs acquires leading Zigbee module provider
This strategic acquisition accelerates Silicon Labs’ roadmap for ZigBee and Thread-ready modules and enhances the company’s ability to support customer needs with comprehensive mesh networking products ranging from wireless system-on-chip (SoC) devices to plug-and-play modules backed by best-in-class 802.15.4 software stacks and development tools. Telegesis modules integrate the antenna and provide a pre-certified RF design that reduces certification costs, compliance efforts and time to market. Customers can migrate later from modules to cost-efficient SoC-based designs with minimal system redesign and full software reuse.
The market for ZigBee modules is large and growing. According to IHS Technology, 20 percent of all ZigBee PRO integrated circuits shipping today are used in modules, and ZigBee module shipments are expected to grow at a compounded rate of 24.6 percent between now and 2019.
Telegesis exclusively uses ZigBee technology from Silicon Labs in its module products, which are deployed in smart meters, USB adapters and gateways for smart energy applications. Additional target applications include home automation, connected lighting, security and industrial automation. The modules come with Silicon Labs’ rigorously tested, field-proven EmberZNet PRO ZigBee protocol stack, which sets the bar for ZigBee stack reliability and has been deployed in more connected products than any other ZigBee PRO stack. Telegesis also offers comprehensive development and evaluation kits to help developers streamline their ZigBee-based applications.
“The addition of Telegesis’s successful module business strengthens Silicon Labs’ position as the market leader in mesh networking solutions for the Internet of Things,” said James Stansberry, senior vice president and general manager of Silicon Labs’ IoT products. “The combination of Telegesis modules, Silicon Labs mesh networking SoCs, best-in-class 802.15.4 software stacks and easy-to-use wireless development tools provides customers with a seamless migration path from modules to SoCs and from ZigBee to Thread-based networks.
Silicon Labs completed the acquisition of Telegesis on November 20, 2015, for a cash purchase price of approximately $20 million (USD). Telegesis is expected to contribute incremental revenue at an annual run-rate of approximately $8-$10 million for the remainder of Q4 2015 and also for fiscal 2016. Silicon Labs expects the acquisition to be slightly accretive on a non-GAAP basis, including the addition of approximately 20 Telegesis employees.
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