Valens Semiconductor Acquires Acroname, Bolstering its Innovative USB Offering for the Industrial Market
Valens Semiconductor, a prominent player in high-performance connectivity, announced the acquisition of Acroname, a specialist in advanced automation and control technologies, for $7.8 million. This acquisition marks Valens' first M&A transaction and aims to bolster its USB offering for the industrial market. Acroname's expertise in USB-PD, telemetry data, and high-end programmable USB hubs will complement Valens’ innovative VS6320 chipsets, facilitating the introduction of new products in sectors like industrial machine vision and test automation. The deal includes earn-out payments up to $7.2 million based on 2024-2025 performance targets.
- Acquisition of Acroname for $7.8 million, enhancing USB offerings.
- Valens' first M&A transaction, showing strategic growth.
- Acroname's expertise in USB-PD and telemetry data complements Valens' technology.
- Expansion into industrial machine vision and test automation markets.
- Potential for new product development and market penetration.
- Earn-out payments depend on meeting ambitious revenue and performance targets.
- Acquisition cost of $7.8 million plus up to $7.2 million in earn-out payments creates financial obligations.
- Post-closing adjustments for net working capital may affect final acquisition cost.
- Future earn-out payments depend on uncertain performance targets for 2024-2025.
Insights
Valens Semiconductor's acquisition of Acroname for
From a technology perspective, this acquisition is promising as it combines Valens' VS6320 chipset, which is the only single-chip solution for 100m industrial-grade USB extension, with Acroname's expertise in USB control and telemetry. This can enable innovative solutions for USB peripherals, addressing the limitations of current USB standards in industrial applications. The integration of BrainStem® system automation platform offers modular and scalable hardware and software tools that can enhance product offerings in areas like manufacturing automation, AV conference rooms and mobile device management. This technological synergy could lead to significant advancements in industrial automation and connectivity solutions.
The acquisition of Acroname positions Valens Semiconductor to capitalize on the growing demand for high-performance connectivity in the industrial market. The industrial machine vision and test automation sectors are rapidly embracing USB-connected solutions and this acquisition provides Valens with a comprehensive product portfolio to serve these needs. The combination of Valens' chipsets and Acroname's USB hub and switching technologies offers a competitive edge. However, market acceptance and the ability to effectively market these new integrated solutions will be key to capturing market share. The industrial and machine vision markets are increasingly relying on USB solutions, making this a strategically sound move for future growth.
HOD HASHARON,
The industrial and machine vision markets are progressing in the transition to USB-connected cameras, with USB3 Vision cameras accounting for nearly
Acroname designs, develops, and distributes products for applications in manufacturing automation, AV conference rooms, managed IT services, mobile device management, and embedded robotic control systems. Based in
"We are excited to welcome Acroname to the Valens team," said Gideon Ben Zvi, CEO of Valens Semiconductor. "By incorporating Acroname's technology and expertise into our USB offering, we will be able to deliver a unique value proposition to the industrial market, enabling the long-distance extension and seamless switching of Hi-Speed and SuperSpeed USB devices. This acquisition, our first M&A transaction, is an important milestone in our strategy of expanding our offering to multiple industries and increasing our value add for our customers."
"Valens is a company that shares our vision of enabling high-performance connectivity for the industrial market," said Justin Gregg, CEO of Acroname. "We're thrilled to become part of a company that aligns with our core values – customer-centric, technology-driven, and with a strong spirit of innovation. Our products will perfectly complement Valens' offering, and the whole team is excited about creating products that combine data-rich control automation with best-in-class connectivity. We're looking forward to enhancing Valens' position as a leader in high-performance connectivity."
The purchase price for the acquisition was
About Valens Semiconductor
Valens Semiconductor (NYSE: VLN) is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens' chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com/.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, currency exchange rates, and contract wins, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor's ("Valens") management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; the impact of the global pandemic caused by COVID-19 on our customers' budgets and on economic conditions generally, as well as the length, severity of and pace of recovery following the pandemic; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers' demand; disruptions in relationships with any one of Valens' key customers; any difficulty selling Valens' products if customers do not design its products into their product offerings; Valens' dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; political, economic, governmental and tax consequences associated with our incorporation and location in
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Head of Communications
Valens Semiconductor Ltd.
Yoni.dayan@valens.com
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Financial Profiles, Inc.
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SOURCE Valens Semiconductor
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