Semtech to acquire AptoVision for $28m

Semtech to acquire AptoVision for $28m
Semtech Corporation, a supplier of analog, mixed-signal semiconductors and algorithms, has signed a definitive agreement to acquire AptoVision Technologies, a privately-held provider of uncompressed, zero-frame latency, Video over IP systems.

The acquisition is expected to add over 30 employees based in Montreal. AptoVision's CEO, Kamran Ahmed, will join Semtech reporting to Gary Beauchamp, exec VP 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. Semtech expects to fund the purchase price using its current cash assets.

"AptoVision has enabled its customers to lead the transition of the Pro AV market away from matrix switching and into Video over IP," said Kamran Ahmed. "Becoming part of Semtech, with its global infrastructure, will increase our ability to serve customers as they continue to reshape the Pro AV space."

The acquisition, subject to customary closing conditions, is expected to close during the Company's current fiscal quarter. Semtech does not expect the acquisition to have any material impact to the financial outlook for its second quarter of fiscal year 2018 that was provided on May 31, 2017. The Company 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.