Silicon Labs to acquire smart home technology company Sigma Designs for $282M

Silicon Labs, a semiconductor company that manufactures products for the Internet of Things, Internet infrastructure, and industrial automation use cases announced last week that it will acquire Sigma Designs for a cash transaction valued at approximately $ 282M.

In case Sigma fails to meet certain financial conditions, the deal will still go ahead as planned for a reduced amount of $ 240M.

The deal is based on Sigma’s per share price of $ 7.05, a 26 percent premium over Sigma Designs’ closing price of $ 5.60 per share on Dec. 6, 2017. Sigma Designs is a smart home company that provides Z-Wave, a leading Internet of Things (IoT) technology for smart home solutions.

The acquisition of Sigma Designs will help Silicon Labs to expand its offerings in the smart home wireless connectivity market. “The connected home represents one of the largest market opportunities in the IoT. Today, there is no single dominant wireless technology for home automation, and protocols include Wi-Fi, Bluetooth®, Zigbee®, Thread, and proprietary,” said Tyson Tuttle, CEO of Silicon Labs. Additionally, the deal will allow Sigma to expand into Smart TV market.


Postscapes: Tracking the Internet of Things

Broadcom Proposes to Acquire Qualcomm for $130 Billion

Broadcom Proposes to Acquire Qualcomm for $ 130 Billion

Broadcom Proposes to Acquire Qualcomm for $ 130 Billion

Broadcom Limited today announced a proposal to acquire all of the outstanding shares of Qualcomm Incorporated for per share consideration of $ 70.00 in cash and stock.

Under Broadcom’s proposal, the $ 70.00 per share to be received by Qualcomm stockholders would consist of $ 60.00 in cash and $ 10.00 per share in Broadcom shares. Broadcom’s proposal represents a 28% premium over the closing price of Qualcomm common stock on November 2, 2017, the last unaffected trading day prior to media speculation regarding a potential transaction, and a premium of 33% to Qualcomm’s unaffected 30-day volume-weighted average price. The Broadcom proposal stands whether Qualcomm’s pending acquisition of NXP Semiconductors N.V. (“NXP”) is consummated on the currently disclosed terms of $ 110 per NXP share or the transaction is terminated. The proposed transaction is valued at approximately $ 130 billion on a pro forma basis, including $ 25 billion of net debt, giving effect to Qualcomm’s pending acquisition of NXP on its currently disclosed terms.

“Broadcom’s proposal is compelling for stockholders and stakeholders in both companies. Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company,” said Hock Tan, President and Chief Executive Officer of Broadcom.

“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products.”

“We would not make this offer if we were not confident that our common global customers would embrace the proposed combination. With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value.”

Tan continued, “We have great respect for the company founded 32 years ago by Irwin Jacobs, Andrew Viterbi and their colleagues, and the revolutionary technologies they developed. Following the combination, Qualcomm will be best positioned to build on its legacy of innovation and invention. Given the common strengths of our businesses and our shared heritage of, and continued focus on, technology innovation, we are confident we can quickly realize the benefits of this compelling transaction for all stakeholders. Importantly, we believe that Qualcomm and Broadcom employees will benefit from substantial opportunities for growth and development as part of a larger company.”

Thomas Krause, Broadcom Chief Financial Officer, added, “The Broadcom business continues to perform very well. Broadcom has completed five major acquisitions since 2013, and has a proven track record of rapidly deleveraging and successfully integrating companies to create value for our stockholders, employees and customers. Given the complementary nature of our products, we are confident that any regulatory requirements necessary to complete a combination with Qualcomm will be met in a timely manner. We look forward to engaging immediately in discussions with Qualcomm so that we can sign a definitive agreement and complete this transaction expeditiously.”

Strategic and Financial Benefits

  • Creates a Leading Diversified Communications Semiconductor Company: Qualcomm’s cellular business is highly complementary to Broadcom’s portfolio, and the combination will create a strong, global company with an impressive portfolio of technologies and products.
  • Accelerates Innovation to Deliver More Advanced Semiconductor Solutions to Global Customers: As a result of enhanced scale, reach and financial flexibility, the combined company will benefit from the ability to accelerate innovation and deliver more advanced semiconductor solutions to its broad global customer base.
  • Compelling Financial Benefits: The combined company will have an enhanced financial profile, benefiting from Broadcom’s proven operating model with industry-leading margins. The combined Broadcom and Qualcomm, including NXP, will have pro forma fiscal 2017 revenues of approximately $ 51 billion and pro forma 2017 EBITDA of approximately $ 23 billion, including synergies. The transaction is expected to be accretive to Broadcom’s Non-GAAP EPS in the first full year after close.

The combined company is expected to have an investment grade credit rating and strong cash flow generation to facilitate rapid deleveraging.

Approvals and Financing

Broadcom’s proposal was unanimously approved by the Board of Directors of Broadcom. Broadcom is prepared to engage immediately in discussions with Qualcomm to work toward a mutually acceptable definitive agreement and is ready to devote all necessary resources to finalize the necessary documentation on an expeditious basis.

The proposed transaction will not be subject to any financing condition. BofA Merrill Lynch, Citi, Deutsche Bank, J.P. Morgan and Morgan Stanley have advised Broadcom in writing that they are highly confident that they will be able to arrange the necessary debt financing for the proposed transaction. Silver Lake Partners, which has served as a strategic partner to Broadcom in prior transactions, has provided Broadcom with a commitment letter for a $ 5 billion convertible debt financing in connection with the transaction.

Broadcom expects that the proposed transaction would be completed within approximately 12 months following the signing of a definitive agreement.

The post Broadcom Proposes to Acquire Qualcomm for $ 130 Billion appeared first on IoT Business News.

IoT Business News

Yale Lock to acquire smart lock maker August Home

Yale, a lock manufacturing company owned by the Assa Abloy group acquired smart lock maker August Home. Terms of the deal were not disclosed.

August Home Smart Locker

It was in July this year that August Home had raised a big chunk of money in the form of $ 25M Series C which brought the upstart lock maker’s total equity funding to $ 73M. It also formed partnerships with vacation rental companies Airbnb and HomeAway to piggyback the latter’s established relationships with homeowners and hence increase its own share in the smart home market.

August Home’s main products are smart locks and video doorbells. “August Home strengthens our residential smart door strategy with complementary smart locks, expansion into video doorbells and comprehensive solutions for home delivery,” said Thanasis Molokotos, executive vice president ASSA.

By acquiring the fast-growing startup, the Sweden-based Assa Abloy plans to strengthen its smart lock market and August Home proves out to be an appropriate candidate as August’s revenues for 2018 are expected to be around $ 60M. August sells its products through its own website as well as via retailers like Amazon.


Postscapes: Tracking the Internet of Things

Cisco to Acquire Jasper Technologies for Internet of Things (IoT)

Acquisition Will Bring Together Connectivity, Security, Automation and Real-Time Insights for a Complete IoT Service Solution

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SAN JOSE, Calif. – Cisco (NASDAQ:CSCO) announced today its intent to acquire Jasper Technologies, Inc., a privately held company based in Santa Clara that delivers a cloud-based IoT service platform to help enterprises and service providers launch, manage and monetize IoT services on a global scale. Under the terms of the agreement, Cisco will pay $ 1.4 billion in cash and assumed equity awards, plus additional retention based incentives.

 

Jasper is the industry’s leading IoT service platform in terms of number of enterprises and service providers; in fact, many of the world’s largest enterprises and service providers are using the Jasper platform to scale their IoT services business globally. With Jasper, companies can connect any device – from cars to jet engines to implanted pacemakers – over the cellular networks of the top global service providers, and then manage connectivity of IoT services through Jasper’s Software as a Service (SaaS) platform.

 

IoT brings with it many complexities, such as connecting and securing millions of devices and collecting and analyzing data. Jasper simplifies these challenges and helps customers accelerate the shift to IoT. The Jasper IoT service platform automates the management of IoT services across connected devices and enables companies to create new business models that transform their products into connected services and generate new sources of ongoing revenue.

 

Jasper develops and provides a SaaS platform with a predictable, recurring revenue IoT business that manages and drives a wide range of connected devices and services for more than 3500 enterprises worldwide, working with 27 service provider groups globally.

 

The proposed acquisition will allow Cisco to offer a complete IoT solution that is interoperable across devices and works with IoT service providers, application developers and an ecosystem of partners. Cisco will continue to build upon the Jasper IoT service platform and add new IoT services such as enterprise Wi-Fi, security for connected devices, and advanced analytics to better manage device usage.
“I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognize the value of the Internet of Things,” said Chuck Robbins, Cisco Chief Executive Officer. “Together, we can enable service providers, enterprises and the broader ecosystem to connect, automate, manage, and analyze billions of connected things, across any network, creating new revenue streams and opportunities.”

“IoT has become a business imperative across the globe. Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale,” said Jahangir Mohammed, Jasper Chief Executive Officer. “By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success.”

 

Jasper CEO Jahangir Mohammed will run the new IoT Software Business Unit under Rowan Trollope, Cisco senior vice president and general manager, IoT and Collaboration Technology Group. The acquisition is expected to close in the third quarter of fiscal year 2016, subject to customary closing conditions.
Visit the blog for more information about Cisco’s intent to acquire Jasper.

 

Investor and Media Conference Call:

 

Cisco Vice President of Corporate Development Rob Salvagno will join Cisco’s Senior Vice President and General Manager, IoT and Collaboration Technology Group, Rowan Trollope, and Jasper CEO Jahangir Mohammed, to host a joint investor and press call on February 3 at 2:00 PM PST to discuss the proposed transaction.  To view the webcast go to: http://edge.media-server.com/m/p/3jnsipgu. The dial-in number is +1 773-756-4602 (international) and 888-810-6801 (United States) passcode: 6383252. Conference call replay will be available from 4pm PST on Wednesday, February 3rd. The replay also will also be available via webcast on the Cisco Investor Relations website at http://investor.cisco.com.

 

About Cisco

Cisco is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. For ongoing news, please go to http://thenetwork.cisco.com.

IoT Magazine

Nokia to acquire Withings for Digital Health Market

Nokia plans to acquire Withings to accelerate entry into Digital Health 

Are you an IoT Pofessional ? Join us at  DIGITAL HEALTH WORLD CONGRESS 2017on May 23-24 in London. (http://digitalhealthcareworldcongress.com/) Find out more about Global Digital Health and eHealth Market Trends and IoT Companies &  Startups.

 

DIGITAL HEALTH WORLD CONGRESS 2016

Espoo, Finland – Nokia has announced plans to acquire Withings S.A., a pioneer and leader in the connected health revolution with a family of award-winning digital health products and services to help people all over the world lead healthier, happier and more productive lives. Withings will be part of our Nokia Technologies business.

“We have said consistently that digital health was an area of strategic interest to Nokia, and we are now taking concrete action to tap the opportunity in this large and important market,” said Rajeev Suri, president & CEO of Nokia. “With this acquisition, Nokia is strengthening its position in the Internet of Things in a way that leverages the power of our trusted brand, fits with our company purpose of expanding the human possibilities of the connected world, and puts us at the heart of a very large addressable market where we can make a meaningful difference in peoples’ lives.”

World Health Organization figures show cardiovascular disease as today’s number one cause of death, with more than a billion adults around the world living with uncontrolled hypertension. Diabetes now affects more than one in twelve adults worldwide, a four-fold increase since 1980. Healthcare is expected to be one of the largest vertical markets in the Internet of Things, with analysts forecasting that mobile health, with a CAGR of 37%, will be the fastest growing health care segment from 2015-2020.

“Withings shares our vision for the future of digital health and their products are smart, well designed and already helping people live healthier lives,” said Ramzi Haidamus, president of Nokia Technologies. “Combining their award-winning products and talented people with the world-class expertise and innovation of Nokia Technologies uniquely positions us to lead the next wave of innovation in digital health.”

The combination of innovative products from Withings and the Digital Health business will also ensure the ongoing renewal of Nokia Technologies’ world class IPR portfolio.

Withings was founded by Chairman Eric Carreel and CEO Cedric Hutchings in 2008 and is headquartered in France, with approximately 200 employees across its locations in Paris, France, Cambridge, US and Hong Kong. Withings’ portfolio of regulated and unregulated products includes activity trackers, weighing scales, thermometers, blood pressure monitors, home and baby monitors and more, and is built on a sophisticated digital health platform, providing insights to empower people to make smarter decisions about the health and wellbeing of themselves and their families. Withings’ own products are complemented by an ecosystem of more than a hundred compatible apps.

“Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing,” said Cédric Hutchings, CEO of Withings. “We’re excited to join Nokia to help bring our vision of connected health to more people around the world.”

The Nokia brand continues to be recognized, valued and trusted by consumers, built on a heritage of beautifully designed, innovative and reliable technology in the service of people around the world to help real human needs.

The planned transaction values Withings at EUR 170 million and would be settled in cash and is expected to close in early Q3, 2016 subject to regulatory approvals and customary closing conditions.

Sources:
World Health Organisation: Diabetes fact sheet; Cardiovascular diseases fact sheet; Global Health Observatory data.
P&S Market Research, “Global Digital Health Market Size, Share, Development, Growth and Demand Forecast to 2020.” November 2015

About Nokia Technologies
Nokia Technologies is Nokia’s advanced technology and licensing business. Formed in 2014, TECH builds upon our solid foundation of industry-leading licensing and technology R&D capabilities. By focusing on Digital Health, Digital Media, Brand Licensing, and Patent Licensing, TECH is expanding the human possibilities of the ever-evolving world of technology. In 2015, Nokia Technologies launched OZO, the world’s first virtual reality (VR) camera designed for professionals.

About Nokia
Nokia is a global leader in the technologies that connect people and things. Powered by the innovation of Bell Labs and Nokia Technologies, the company is at the forefront of creating and licensing the technologies that are increasingly at the heart of our connected lives.

With state-of-the-art software, hardware and services for any type of network, Nokia is uniquely positioned to help communication service providers, governments, and large enterprises deliver on the promise of 5G, the Cloud and the Internet of Things. http://nokia.com

Media Enquiries:
Nokia 
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com

Investor Enquiries:
Nokia Investor Relations
Tel. +358 4080 3 4080
Email: investor.relations@nokia.com

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