Semtech Corporation, a supplier of analog, mixed-signal semiconductors and algorithms, has announced the signing of a definitive agreement to acquire AptoVision Technologies, Inc., a privately held provider of uncompressed, zero-frame latency, Video over IP solutions. The acquisition is expected to add more than 30 employees based in Montreal. AptoVision’s CEO, Kamran Ahmed, will join Semtech, reporting to Gary Beauchamp, Executive Vice President and General Manager of Semtech’s Signal Integrity Products Group.
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. According to the company, Semtech expects to fund the purchase price using its current cash assets.
The acquisition, subject to customary closing conditions, is expected to close during Semtech’s current fiscal quarter. According to Semtech, the acquisition will not have any material impact to the financial outlook for its second quarter of fiscal year 2018 that was provided on May 31, 2017. It 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.