Manchester, New Hampshire-based global leader in sensing semiconductor technology for motion control and energy-efficient systems, Allegro Microsystems acquired California, USA-based company specializing in advanced Tunnel Magnetoresistance (“TMR”) sensor technology, Crocus Technology. The company announced the acquisition on August 8, 2023. The deal costs USD 420 million.
Purpose of financing for Allegro Microsystems
With the latest acquisition of Crocus, Allegro gets access to unique technology and products. The new products are well-suited to serve high-growth applications in e-mobility, clean energy and automation. More than 200 patents support them.
The acquisition of Crocus is a combination of cash on hand and a new term loan.
What the company’s official has to add
Vineet Nargolwala, President and CEO of Allegro said, “Allegro has invested in TMR technology for the past decade, providing our customers with innovative and high-performing solutions enabling them to design products with optimal performance. We are seeing broader applications of TMR technology as the megatrends of electrification and automation accelerate. This highly complementary acquisition aligns perfectly with Allegro’s growth initiatives and our focus on e-mobility, clean energy and automation. In addition to accelerating our TMR roadmap and further strengthening our leadership in magnetic sensors, the acquisition will allow us to offer a broader and more differentiated product offering to benefit our customers. We also welcome the deep expertise and technical talent that Crocus will add to the Allegro team.”
What the Crocus has to comment
In addition, Zack Deiri, President and CEO of Crocus, said, “The Crocus team is excited to join Allegro and unite complementary expertise to create superior, highly differentiated customer solutions. By combining Crocus’s best-in-class advanced TMR technology with Allegro’s long-standing partnerships with leading automotive and industrial OEMs and tier-1s together, we expect to accelerate the adoption of TMR in targeted automotive and industrial markets. I am very proud of what Crocus has accomplished and am excited to optimize our TMR technology’s full potential together with Allegro.”
Crocus Technology is a leader in providing advanced TMR sensor technology solutions. It caters to the designers and manufacturers of industrial, automotive and consumer electronics. Crocus develops XtremeSense TMR advanced sensor technology. The solution provides the highest sensitivity, lowest power consumption and smallest size by comparison to other magnetic technologies such as Hall, AMR and GMR.
About Allegro Microsystems
Ravi Vig 1990 launched Allegro Microsystems. The company is a pioneer in global designing, developing, fabless manufacturing and marketing of sensor integrated circuits (“ICs”) and application-specific analogue power ICs enabling emerging technologies in the automotive and industrial markets.
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