US-based Silicon Labs splash out over $115m to acquire Oslo’s electronics success story Energy Micro.

Energy Micro products are found in many of the internet-enabled devices we use on a daily basis. Their energy-friendly MCU and radio solutions are designed to enable a broad range of power-sensitive applications for the Internet of Things (IoT), smart energy, home automation, security and portable electronics markets.

The internet of things is thriving: industry experts predict that the number of connected devices for the IoT will top 15 billion nodes by 2015 and reach 50 billion nodes by 2020.

It’s a strategic acquisition for Silicon Labs. The Energy Micro portfolio complements their existing strengths in energy-efficient processing and wireless connectivity technology, targeting the growing embedded market.

“This acquisition combines two proven leaders in nano-power MCU and wireless SoC design into a formidable force that will accelerate the deployment of energy-friendly solutions across the Internet of Things and smart energy industries”, says Silicon Labs CEO Tyson Tuttle.

In the deal expected to close next month, the shareholders of Energy Micro will receive an up-front payment of $115 million in cash, plus approximately $55 million in deferred and earn-out consideration. It’s quite a premium for Silicon Labs to pay, with Energy Micro expected to contribute $7 million in revenue in the second half of 2013. According to the press release, “anticipated growth is expected to allow the transaction to be accretive on a non-GAAP basis by the end of 2014.”

It’s great news for Nordic VCs Northzone Ventures and Investinor, long-time backers of Energy Micro, but also for the staff based in Oslo. Silicon Labs seem likely to retain Energy Micro’s presence in the Norwegian capital, under the stewardship of current CEO Geir Førre.

In a letter to existing customers, Førre says, “For us at Energy Micro this is a great opportunity to accelerate our roadmap and business. We can execute much faster on new and existing products with access to more R&D, supply chain and sales resources. We can also develop more system solutions and development tools that you as a user can take advantage of. All Energy Micro EFM32 series will be continued.”

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