Semtech to acquire AptoVision
WORLD: Semtech Corporation is set to expand its broadcast video portfolio with the purchase of video-over-IP specialist AptoVision. Under the terms of the agreement, Semtech will acquire the outstanding equity interests of AptoVision for US$28 million and additional contingent consideration of up to US$47 million subject to achieving certain future financial goals. Semtech expects to fund the purchase price using its current cash assets.
The deal will see more than 30 Montreal-based employees join Semtech. AptoVision CEO, Kamran Ahmed, will remain with the company, reporting to Gary Beauchamp, EVP and GM of Semtech’s signal integrity products group.
‘AptoVision has enabled its customers to lead the transition of the pro A/V market away from matrix switching and into video-over-IP,’ said Mr Ahmed. ‘Becoming part of Semtech, with its global infrastructure, will increase our ability to serve customers as they continue to reshape the pro A/V space.’
‘Semtech is a leader in the SDI broadcast video market and with the acquisition of AptoVision’s pioneering BlueRiver technology for video-over-IP, we are further expanding our opportunity into the fast growing pro A/V market and solidifying our commitment to the video industry,’ stated Mr Beauchamp.
The acquisition is expected to close during Semtech’s current fiscal quarter. It does not expect the transaction to have any material impact to the financial outlook for its second quarter. It believes the deal will be neutral to its fiscal year 2018 non-GAAP earnings and to be accretive to its fiscal year 2019 non-GAAP earnings.