Knowles Corporation a known market leader and global provider of advanced micro-acoustic, audio processing, and precision device solutions, recently announced its new acquisition of MEMS microphone ASIC design business from ams AG. Knowles uses its leading position in MEMS (micro-electro-mechanical systems) microphones and strong capabilities in audio processing technologies to optimize audio systems and improve the user experience in mobile, ear, and IoT applications.
The 1946 founded organization which has its headquarters in Itasca, Illinois, is a global organization with employees in 11 countries. The company is focused on investing in high value solutions to diversify its revenue and increase exposure to high-growth markets.
“As voice has become a primary interface for mobile, ear, and IoT applications, we expect this acquisition to result in an immediate financial benefit from vertical integration and further enhance our leading position in the MEMS microphone market,” said Jeffrey Niew, president and chief executive officer of Knowles. “In addition to bringing in world-class mixed signal circuit design talent and IP, this transaction will provide significant cost synergies. We plan to leverage this ASIC design team and IP to develop innovative new products, further broadening our industry-leading portfolio of MEMS microphones.”
The transaction includes intellectual property, rights to source ASIC wafers from multiple foundry partners, and the transfer of the ASIC design team, which will continue to be based in Switzerland. The purchase price of $58 million was paid from cash on hand. Knowles expects the acquisition to be accretive to non-GAAP diluted earnings per share beginning in the first quarter of 2020, and intends to provide additional details regarding this acquisition during its Q4 earnings call.