Maxim acquires MEMS developer SensorDynamics
5 August 2011
Maxim Integrated Products has acquired Austrian company
SensorDynamics, a privately held semiconductor company that develops
proprietary sensor and microelectromechanical (MEMS) solutions.
SensorDynamics holds patents for MEMS sensor technology. It has
devoted over 800 man-years of research and development to the
high-growth fields of MEMS sensors and associated low power
interface and wireless connectivity solutions. Consequently, this
acquisition enables Maxim to accelerate expansion in markets where
it already has a strong presence including automotive and high-end
"Maxim is a recognized leader in analog integration, and this
acquisition extends Maxim's integration strategy by enabling us to
fuse many types of sensors with our analog technology. The strategic
integration of sensors, analog functions and low power wireless
connectivity will allow us to deliver end-to-end mixed-signal
solutions that provide our customers with better performance,
smaller form factors and lower system costs," said Tunc Doluca,
Maxim's President and Chief Executive Officer. "The result will be a
unique combination of technologies that will eventually enable a
whole new generation of intelligent machines."
Maxim says that in the near term, this acquisition enables
SensorDynamics to focus on its strength in engineering for sensors
and MEMS, while utilizing Maxim's manufacturing, distribution and
sales infrastructure. This will quickly make the combined company a
leading competitor in the inertial sensor, wireless connectivity and
sensor interface markets.
The MEMS-based sensor market is expected to grow considerably as new
applications for sensors are developed. According to market research
firm IHS iSuppli, the total market for MEMS-based sensors is
expected to be $7.7 billion in 2011, of which SensorDynamics
gyroscope inertial sensor technology addresses about $900 million.
IHS iSuppli estimates this specific market will grow at a three-year
compound annual growth rate (CAGR) of 14 percent from 2011 to 2014.
Longer term, Maxim will address selected portions of the broader
MEMS-based sensor market.
Sensors convert real-world signals to analog signals and are a
critical, adjacent function to analog semiconductors. They are a
natural extension of Maxim's strength in converting analog signals
to digital signals and back to analog. SensorDynamics' current focus
on the automotive market aligns with Maxim's goal to grow its
automotive business. Maxim's ability to extend SensorDynamics'
sensor technology to the high-end consumer market is well suited to
Maxim's growth goals and track record of leveraging its own broad
intellectual property portfolio to multiple markets.
Maxim is paying approximately $130 million plus the assumption of
approximately $34 million in debt to acquire Sensor Dynamics.