Gennum Corporation acquires Nanotech Semiconductor Limited

Gennum Corporation has acquired leading fabless IC Company specializing in advanced CMOS mixed-signal ICs for fiber optic communications Nanotech Semiconductor Limited. Under the terms of the acquisition, Gennum paid US$$34 million in cash, plus agreeing to an earn-out.

The acquisition further strengthens Gennum's growth strategy in the optical transceiver IC market by adding state-of-the-art CMOS products and technology for high volume applications such as Ethernet, PON, and telecom and consumer optics.

Gary Steele, Founder, CEO and Chairman of the Board of Nanotech, said the combined entity creates one of the industry's most compelling optical IC transceiver portfolios.  By integrating the firm’s recognized expertise in low cost, high performance CMOS based optical products and technologies and talented employees with Gennum's high speed optical products and global organization, customers will gain access to a uniquely comprehensive portfolio and product roadmap, said Steele.

The acquisition of Nanotech further extends Gennum's leadership and portfolio by enabling the company to offer 100Mb/s to 100Gb/s optical IC solutions to fast growing markets such as Fiber to the home (PON) and Ethernet. Nanotech's low cost CMOS technology together with Gennum's high performance SiGe technology allows Gennum to address optical networking markets 'from inception to maturity'.

The transaction will result in an increased market presence in an expanded, US$1.3 billion addressable market and a strongly positioned business with a highly differentiated optical transceiver IC portfolio, spanning the entire optical speed range from 100Mb/s to 100Gb/s. The firm expects increased revenues, with Nanotech's revenues for the year ended December 31, 2010 being approximately US$7.4 million and current revenues being approximately US$1.0 million per month

Dr. Franz Fink, President and Chief Executive Officer of Gennum, noted that through this acquisition, Gennum has significantly strengthened its mixed-signal and optical product portfolio and added critical CMOS technology capability enabling the company to address a broader range of high growth networking markets such as Fiber to the Home, Ethernet and consumer optics.

Fink said the firm has listened to its customers' needs to simplify the supply chain and can now provide them with one of the most complete optical transceiver ICs portfolios spanning all data rates. According to Frank, he believes the Nanotech portfolio coupled with Gennum's high speed mixed signal and optical portfolio will increase its ability to provide more, high value products resulting in increased growth opportunities for Gennum.

Gennum expects the combined portfolio to deliver highly differentiated optical products that capture a greater portion of the silicon content in applications such as telecommunications, networking, fiber to the home, and consumer connectivity.

7th April 2011