News: Optoelectronics
3 September 2021
indie to acquire TeraXion for $159m
indie Semiconductor Inc of Aliso Viejo, CA, USA has signed a definitive agreement to purchase optoelectronic component and module designer and manufacturer TeraXion Inc of Quebec City, Canada. The acquisition accelerates indie’s vision of becoming a semiconductor and software-level solutions provider for multiple sensor applications spanning advanced driver-assistance systems (ADAS) and autonomous vehicles (AVs). According to a MarketWatch report in March, the global automotive LiDAR segment is expected to rise at a 28% compound annual growth rate (CAGR) off a 2020 base, creating a $3.2bn addressable market by 2027.
Founded in 2000 and underpinned by more than 30 global patents, TeraXion produces low-noise lasers, Bragg gratings and integrated photonic elements to address high-performance applications. More recently, TeraXion was an optical sensing reference design partner of indie, supporting next-generation frequency-modulated continuous wave (FMCW) systems for automotive light detection and ranging (LiDAR).
“Given the critical role LiDAR plays in achieving maximum levels of safety for assisted and self-driving cars, we are excited to welcome TeraXion’s world-class design team and integrate their differentiated IP and product portfolio,” says indie’s co-founder & CEO Donald McClymont. “Specifically, TeraXion has developed leadership laser technologies that, when optimized together with our SoC [system-on-chip] solutions, enable order-of-magnitude improvements in both system performance and cost. Accordingly, this highly synergistic combination, built on a shared vision and strong cultural fit, positions indie to accelerate mass-market deployments of LiDAR platforms,” he adds.
“By combining indie’s mixed-signal, DSP [digital signal processing], software and power management experience with our laser and sensing technologies, together we intend to enable truly unparalleled solutions for ADAS and autonomous driving as well as adjacent high-reliability applications,” says TeraXion’s president & CEO Ghislain Lafrance, who plans to join indie’s senior management team and continue to lead TeraXion’s operations in Quebec.
Based on indie’s closing stock price as of 30 August, indie will pay about US$159m for TeraXion, consisting of US$80m in cash plus a fixed number of eight million indie Class A common shares. The transaction has been approved by the boards of directors of both firms and is expected to close in fourth-quarter 2021, subject to customary closing conditions. Excluding any non-recurring acquisition-related charges and amortization of intangibles, indie expects the acquisition to be immediately accretive.
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