SiTime agreed to acquire the clock products of Aura Semiconductor, a multinational fabless semiconductor company based in Bangalore. TUndet the deal, SiTime will also license all of its clock IP. This is an all-cash transaction, comprised of fixed payments totaling $148 million, and earnouts capped at $120 million. The transaction is expected to close by the end of 2023.
“SiTime’s vision is to transform all categories of the $10 billion timing market,” said Rajesh Vashist, CEO and chairman of SiTime. “Since our IPO in 2019, our singular focus has been on solving the most difficult problems in the oscillator category, and that has paid off. In these four years, we’ve grown from 60 to 150 unique products, and the price of our highest-value oscillator has grown tenfold. With this acquisition, we bring our focus to the category of clocks, adding 20 best-in-class clocks now, and another 20 by the end of 2024.”
“We’ve leveraged our strong balance sheet to accelerate by several years our clocking revenue, while also increasing our oscillator revenue,” continued Vashist. “These clocks have gross margins that are higher than our corporate target and are used with our Elite TCXO and Epoch OCXO families. Before today, customers were forced to deal with separate Clock and Oscillator vendors. Uniquely, SiTime will offer both categories, standalone and engineered to be optimized with each other, for our core markets of communications, datacenter, and AI. With this deal, we significantly advance our vision, becoming the only provider with complete and differentiated precision timing products.”
