Contact: Scott Denne
SiTime nabs a $200m exit in a sale to Japan’s MegaChips, navigating a market that’s crowded with failed competitors. Time, ironically, seems to be the element missing from earlier attempts by semiconductor companies to break into the timing market.
SiTime designs chips that take the place of the quartz crystals that for decades have provided the timing element in nearly all electronic devices – from high-end communications equipment to everyday consumer electronics. As silicon is smaller, cheaper and more energy efficient than quartz, it’s a large and promising market. You wouldn’t know it looking at SiTime’s peers, almost all of which ran low on capital while waiting for OEMs to get comfortable enough to replace quartz.
Earlier deals in this space have ranged from $6m-25m, typically at a loss to investors. While not the oldest of this group, SiTime had products in the market far longer, having generated revenue since 2008 (last year it posted $15.5m). It was also better capitalized: SiTime raised $79m from investors, including a $25m debt and equity round just last month.
Needham & Company advised SiTime on the transaction.
Acquisitions of timing chip vendors
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Source: The 451 M&A KnowledgeBase
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