Digital signal processing technology licensor Ceva has entered into a $33 million cash acquisition deal for Marlborough, Massachusetts-based chip development company Intrinsix in a strategy to expand into semiconductor market verticals.
Ceva said Monday it aims to create a turnkey intellectual property platform for smart sensing and wireless connectivity technology developers that want to bring chip products to the aerospace, defense, automotive, medical, robotics industrial internet of things and 5G communications markets.
Intrinsix designed system-on-a-chip devices for enterprise customers such as IBM (NYSE: IBM), Intel (Nasdaq: INTC), Leidos (NYSE: LDOS) and Lockheed Martin (NYSE: LMT). The chip designer also worked with the Defense Advanced Research Projects Agency in processor development programs.
Gideon Wertheizer, CEO of Ceva, said the move to acquire Intrinsix aims to create a comprehensive IP portfolio that will integrate offerings from the two companies and to expand the combined entity’s serviceable market.
Both parties expect to close the deal in the second quarter of the current calendar year.
Mirus Securities served as Intrinsix’s financial adviser on the transaction.