HOD HASHARON, Israel - Valens Semiconductor (NYSE: VLN), known for its high-performance connectivity solutions, has acquired Acroname, a company that specializes in automation and control technologies. This move is aimed at strengthening Valens' position in the industrial market by incorporating Acroname's advanced USB technologies into its offerings.
The acquisition, announced today, marks Valens' first foray into mergers and acquisitions and is seen as a strategic expansion of its product line to include Acroname's expertise in software control, telemetry data, and robust USB solutions. Acroname's programmable USB hubs, switches, and test automation systems are expected to complement Valens' VS6320 chipset, which is notable for being the only single-chip 100-meter industrial-grade copper SuperSpeed USB extension currently on the market.
Acroname, headquartered in Boulder, Colorado, and established in 1994, has a significant footprint in the industrial automation space with its BrainStem® technology platform. The platform is used in over 400,000 devices worldwide for applications ranging from manufacturing automation to mobile device management.
Gideon Ben Zvi, CEO of Valens Semiconductor, expressed enthusiasm about the acquisition, highlighting the combined capabilities of both companies to deliver enhanced connectivity solutions for the industrial market. Justin Gregg, CEO of Acroname, shared similar sentiments, noting the alignment of the two companies' visions and core values.
The financial terms of the deal include a $7.8 million cash payment by Valens, plus Acroname's cash on hand at closing, totaling $1.3 million. Additional earn-out payments of up to $7.2 million are contingent on achieving specific revenue, EBITDA, cash flow targets, and product development milestones through June 2026.
Valens Semiconductor's technology is integral to a variety of applications, including audio-video installations, videoconferencing, and advanced driver-assistance systems (ADAS). The company's chipsets are foundational to industry standards like HDBaseT® and MIPI A-PHY.
The acquisition is based on a press release statement.
InvestingPro Insights
In the wake of Valens Semiconductor's recent acquisition of Acroname, investors and industry observers are keen to understand the financial health and market position of the company. According to InvestingPro data, Valens Semiconductor currently holds a market capitalization of $283.02 million. Despite challenging market conditions, the company has maintained a gross profit margin of 60.71% over the last twelve months as of Q1 2024, showcasing their ability to retain a significant portion of revenue after accounting for the cost of goods sold.
InvestingPro Tips indicate that Valens Semiconductor is trading near its 52-week high with a price 96.61% of the peak, reflecting a strong performance over the last three months, with a price total return of 24.54%. This momentum may be of interest to investors looking for companies with recent market gains. Additionally, the company's balance sheet reflects a positive liquidity position, as it holds more cash than debt, which could provide financial flexibility in integrating Acroname's technologies and pursuing further growth opportunities.
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