Semtech Corporation, a manufacturer of analog, mixed-signal semiconductors and algorithms, announced a definitive agreement to acquire AptoVision Technologies Inc., a privately held producer of uncompressed, low latency video-over-IP solutions.
The acquisition is expected to add over 30 employees to AptoVision’s Montreal facilities. AptoVision’s CEO, Kamran Ahmed, will join Semtech, too, reporting to Gary Beauchamp, executive VP and general manager.
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“AptoVision has enabled its customers to lead the transition of the Pro AV market away from matrix switching and into Video over IP,” says Ahmed. “Becoming part of Semtech with its global infrastructure will increase our ability to serve customers as they continue to reshape the Pro A/V space.”
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. The company expects to fund the purchase price using its current cash assets.
The California-based company says that 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 ecosystems.
Semtech says the combination of AptoVision’s advanced algorithms for real-time, full bandwidth video transmission over IP networks, and its high-speed signal integrity and chip development expertise should accelerate SDVoE adoption as the next solution in the progression of video transport.
“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 A/V market and solidifying our commitment to the video industry,” adds Beauchamp.
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.
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