AUSTIN, Texas – May 21, 2012 - Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-
performance, analog-intensive, mixed-signal ICs, today announced it has signed a definitive
agreement to acquire Boston-based Ember Corporation for initial consideration of $72 million,
subject to an adjustment for certain working capital amounts and potential earn-out
consideration. Ember is a late-stage private company offering market-leading silicon, software
and development tools for 2.4 GHz wireless mesh networking solutions being deployed in smart
energy, connected home, security, lighting, and many other monitoring and control applications.
This strategic acquisition brings Silicon Labs the technology and software expertise required to
enable the low-power mesh sensor networks being deployed today in a wide range of residential,
commercial and industrial applications. The demand for low-power, small-footprint wireless
technology is accelerating as more and more IP-enabled end points are being connected to the
“Internet of Things.” Expected to be the first 10 billion unit per year market, the Internet of
Things is being realized to enable more convenient, energy-efficient and safer home and work
environments.
The Ember portfolio complements Silicon Labs’ products and targets a growing market
estimated to increase from $100 million in 2012 to $600 million by 2016. The combination of
the companies’ products will bring together microcontroller (MCU), power and isolation
technology, sensors, and both sub-GHz and 2.4 GHz wireless radios into a comprehensive
portfolio of highly integrated networking solutions for embedded systems.
“Silicon Labs has consistently demonstrated a successful track record of integrating high-
performance, low-power RF and mixed-signal ICs in CMOS and ramping them into high-volume
markets,” said Tyson Tuttle, president and CEO of Silicon Laboratories. “This acquisition of a
high-caliber team with proven wireless mesh networking know-how accelerates our ability to
offer complete system solutions to our customers.”
Ember is a pioneer in the market for 802.15.4 ZigBee® solutions, developing mesh networking
technology since the concept was first conceived. The design team represents some of the most
experienced talent in embedded radios. The company’s products integrate high-performance,
low-power 2.4 GHz wireless ICs with reliable and scalable networking software into a platform
with unmatched performance and flexibility. With more than a decade of systems and software
knowledge applied to the connected home, smart meters and building automation and more than
25 million units shipped, Ember has developed a leadership position in ZigBee-based systems
and has established the benchmark for performance and usability.
“We believe our track record and technology leadership in ZigBee-based systems combined with
Silicon Labs’ broad portfolio and focus on establishing a market-leading business in embedded
wireless will enable our customers and the Internet of Things market to grow faster,” said Bob
LeFort, chief executive officer of Ember. “The shared vision, compatible cultures and
commitment to excellence augurs well for both the market as well as the Ember team.”
Silicon Labs expects that the addition of Ember’s high-performance system-on-chip (SoC)
portfolio, advanced networking software expertise, and a proven design and applications team
will contribute to the rapid expansion of its Broad-based business. Silicon Labs intends to apply
the underlying technology platform and expertise to enable low-power mesh networking in not
only home but also industrial and commercial applications. Further, both companies’ products
leverage the same underlying development environment, which is expected to accelerate the
combined roadmap and support rapid adoption among the existing customer base.
Ember is expected to contribute approximately $10-$12 million in revenue in the second half of
2012 and to be accretive on a non-GAAP basis in 2013. The boards of each company have
approved the acquisition, which awaits the satisfaction of regulatory requirements and other
customary closing conditions. In conjunction with this all-cash acquisition, Silicon Labs’ board
of directors has authorized management to pursue a $200 million credit facility that could be
used for stock repurchases and for other general corporate purposes.
Webcast Wednesday, May 23rd
An investor conference call and presentation are scheduled in conjunction with the Barclays
Global Technology, Media and Telecommunications Conference at the Sheraton New York
Hotel at 4:15 p.m. Eastern Time on Wednesday, May 23rd. Access to the presentation and audio
webcast will be available on the investor page of Silicon Laboratories’ website at
http://investor.silabs.com.
About Ember
Ember Corporation (www.ember.com; twitter: @EmberCorp) develops wireless mesh
networking technology – chips, software and tools - for Smart Energy, connected homes, and
many other monitoring and control applications enabling greener living and work environments.
The Boston-based company has approximately 60 employees worldwide including an IC design
center in Cambridge, England.
About Silicon Laboratories Inc.
Silicon Laboratories is an industry leader in the innovation of high-performance, analog-
intensive, mixed-signal ICs. Developed by a world-class engineering team with unsurpassed
expertise in mixed-signal design, Silicon Labs’ diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size and power consumption.
For more information about Silicon Labs, please visit www.silabs.com.
ZigBee: Control your world
ZigBee offers green and global wireless standards connecting the widest range of devices to
work together intelligently and help you control your world. The ZigBee Alliance is an open,
non- profit association of approximately 400 members driving development of innovative,
reliable and easy-to-use ZigBee standards. The Alliance promotes worldwide adoption of ZigBee
as the leading wirelessly networked, sensing and control standard for use in consumer,
commercial and industrial areas. For more information, visit: www.ZigBee.org.
This press release contains forward-looking statements based on Silicon Laboratories’ current
expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,”
“project,” “will,” “expanding,” “growing,” and similar phrases as they relate to Silicon
Laboratories or Ember are intended to identify such forward-looking statements. These forward-
looking statements reflect the current views and assumptions of Silicon Laboratories and are
subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Among the factors that could cause actual results to differ materially from those in
the forward-looking statements are the following: risks related to the successful completion of
the development and implementation of Ember’s technology, risks that the acquisition may not
yield the expected benefits due to the failure to properly integrate the acquired business and
employees; risks that the acquired business’ products and processes under development may fail
to achieve market acceptance; risks of disputes regarding the acquired business and intellectual
property; risks that the performance of Silicon Laboratories’ existing business may not offset the
dilutive effects of the acquisition; risks associated with the competitive and cyclical nature of the
semiconductor industry and other factors that are detailed in Silicon Laboratories’ filings with
the SEC. Silicon Laboratories disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Note to editors: Silicon Laboratories, Silicon Labs and the Silicon Labs logo are trademarks of Silicon
Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.