Maxim Acquires MEMS Sensor Company for $130 Million

MEMS-based sensor market is expected to grow considerably as new applications for sensors are developed. According to market research firm IHS (News - Alert) iSuppli, the total market for MEMS-based sensors is expected to be $7.7 billion in 2011, of which gyroscope inertial sensor technology addresses about $900 million. The research firm estimates that this specific market will grow at a three-year compound annual growth rate (CAGR) of 14 percent from 2011 to 2014.

To strengthen its position in the growing MEMS-based sensor market, analog and mixed-signal semiconductor supplier Maxim Integrated Products (News - Alert) has acquired Lebring, Austria based SensorDynamics, a privately held semiconductor company offering microelectromechanical (MEMS) sensor solutions.

According to Maxim, this acquisition will enable the company to expand in markets where it already has a strong presence including automotive and high-end consumer.

In a statement, Tunc Doluca, Maxim’s president and chief executive officer said, “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.” “The result will be a unique combination of technologies that will eventually enable a whole new generation of intelligent machines,” noted Doluca.

Likewise, Hubertus Christ, SensorDynamics’ chief executive officer commented, “This transaction will enable SensorDynamics to enhance its product pipeline and foster sustainable growth well into the future. SensorDynamics’ management team is pleased to be a part of the integration and we look forward to the next stage in a very exciting business.”

To acquire SensorDynamics, Maxim is paying approximately $130 million plus the assumption of approximately $34 million in debt.

Combining its broad IP portfolio with SensorDynamics’ MEMS sensor technology, Maxim is planning to develop innovative products to meet the needs of high-end consumer applications. And, thereby, expand its growth in these markets.

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