Analog and mixed-signal semiconductor manufacturer Semtech Corporation has signed an agreement to acquire AptoVision Technologies, a privately held producer of video-over-IP solutions for both the residential and commercial markets.
The acquisition is expected to add more than 30 employees based in AptoVision's Montreal facilities. Kamran Ahmed, CEO of AptoVision, will join Semtech under Gary Beauchamp, executive vice president and general manager, Semtech.
“AptoVision has enabled its customers to lead the transition of the Pro AV market away from matrix switching and into video over IP,” says Ahmed. “Becoming part of Semtech with its global infrastructure will increase our ability to serve customers as they continue to reshape the Pro A/V space.”
Under the terms of the purchase agreement, Semtech will acquire the outstanding equity interests of AptoVision for a cash purchase price of $28 million, and additional contingent consideration of up to $47 million subject to achieving certain future financial goals. Semtech expects to fund the purchase price using its current cash assets.
AV over IP and SDVoE Drive the Deal
Semtech says HD, UHD and 4K video offer an enhanced, immersive experience, and AptoVision's BlueRiver technology addresses the need for flexible software defined AV that can be carried over low-cost IP networks without compression or latency which is critical to support these applications.
The Calif.-based company emphasizes that Software Defined Video over Ethernet (SDVoE) is the only approach to video-over-IP based on an interoperable ecosystem of pro AV products and companies, and AptoVision's BlueRiver technology is the underlying technology driving SDVoE applications and ecosystems.
The combination of AptoVision's advanced algorithms for real-time, full bandwidth video transmission over IP networks, and its high-speed signal integrity and chip development expertise should accelerate SDVoE adoption as the next solution in the progression of video transport, according to Semtech's announcement.
“Semtech is a leader in the SDI broadcast video market and with the acquisition of AptoVision's pioneering BlueRiver technology for video over IP, we are further expanding our opportunity into the fast growing Pro A/V market and solidifying our commitment to the video industry,” adds Beauchamp.
The acquisition, subject to customary closing conditions, is expected to close during the company's current fiscal quarter.