Adesto Technologies announced that it would acquire S3 Semiconductors for $35 million in cash and credit, moving beyond its core business of memory chips. The Dublin, Ireland-based company makes mixed-signal, analog and radio frequency chips and it will become a business unit inside Adesto.
Narbeh Derhacobian, chief executive of the Santa Clara, California-based Adesto, said on Thursday that the acquisition was “a meaningful step in becoming a supplier of a broad range of innovative semiconductor products and solutions for the IoT markets.” He added that S3 Semiconductor's products would expand Adesto’s customer base and serviceable market.
Adesto added that the acquisition would help it expand in markets like communications and the industrial Internet of Things. With S3 Semiconductor’s products, the company will be able to supply a larger percentage of parts inside embedded devices, ranging from smart home appliances to factory sensors. The deal also gives it more embedded and mixed-signal engineering expertise.