MEMSIC, Inc, (NASDAQ GM: MEMS), a leading MEMS solution provider announced today the signing of an Asset Purchase Agreement with Crossbow Technology to acquire selected Crossbow Technology product lines. The purchase includes the non-military portion of Crossbow's Inertial Systems business lines and the Wireless Sensor Network (WSN) "Mote" and eKo business lines. In addition to the acquisition of these product lines, engineers from Crossbow will join MEMSIC, adding significant sensor system integration and solution talent to MEMSIC's worldwide engineering team. The sales and marketing personnel joining MEMSIC from Crossbow will expand MEMSIC's global customer activities and support customers in all markets.
"Driven by the market need for total product solutions, this product line acquisition will provide MEMSIC customers with world-class system integration technology" said Dr. Yang Zhao, President & CEO of MEMSIC, Inc. "Crossbow's state-of-the-art inertial and wireless module products will meet the needs of MEMSIC's growing industrial customer base. In addition, Crossbow's advanced and patented inertial navigation algorithms will meet the needs of MEMSIC's mobile phone customers for advanced navigation and LBS (location-based services) functions in future smart-phones."
MEMSIC's long-term strategy is to broaden its products lines and enhance its sensor integration and solution capabilities. The acquisition provides MEMSIC with incremental revenue and long-term margin growth as well as strengthening MEMSIC's engineering, sales and marketing capabilities.
"Dr. Zhao and I share a common vision in future sensor solution business. Crossbow's decade long history of innovation using a broad-range of MEMS sensor technologies, combined with MEMSIC's strong sensor technology platform and manufacturing excellence, will drive significant new business opportunities worldwide for MEMSIC in commercial aerospace, industrial, automotive, and consumer market segments." said Mike Horton, President & CEO of Crossbow Technology, Inc.
The purchase price of the acquisition is $18 million in cash and is non-dilutive to MEMSIC shareholders. The closing of the acquisition is subject to certain conditions.