MEMSIC, Inc. (NasdaqGM: MEMS),
the leading MEMS solution provider, today announced the completion of its acquisition
of selected product lines, intellectual property and fixed assets from Crossbow
Technology, Inc. The transaction extends MEMSIC's sensor integration and
solution capabilities, expands its product lines, and strengthens its sales
and marketing capabilities.
"This acquisition is a major milestone in MEMSIC's strategy to
move beyond component manufacturing. It offers a myriad of opportunities to
develop high-end products and drive revenue and margin growth,” said Dr.
Yang Zhao, President and CEO of MEMSIC. “Crossbow's state-of-the-art
technology has applications in many sectors, and its leading-edge solutions
will enable us to tap opportunities in the industrial and aerospace markets
worldwide. An important goal of the acquisition will be to drive down the cost
of Crossbow's products by taking full advantage of MEMSIC's manufacturing
platform in China. The acquisition will also enable MEMSIC to leverage the many
financial incentives offered by the Chinese government to attract high-tech
As part of the acquisition, engineers from Crossbow have joined MEMSIC's
global engineering team, adding significant sensor system integration and solution
talent. Selected sales and marketing personnel have also joined MEMSIC, expanding
its customer reach and enabling a seamless transition for Crossbow's large
The acquisition price of $18 million in cash included the non-military portion
of Crossbow Technology's Inertial Systems business lines and its Wireless
Sensor Network (WSN) “Mote” and eKo environmental monitoring business
lines. These business lines accounted for approximately $10 million in sales
annually by Crossbow.
Founded in 1995 and headquartered in San Jose, California, Crossbow Technology,
Inc. was the leading end-to-end solutions supplier of wireless sensor networks
and inertial sensor systems. Crossbow shipped over 500,000 sensors to more than
1,000 customers, including select Fortune 100 companies, for diverse applications
such as industrial, aerospace, and environmental control.