Cirrus Logic to Acquire Lion Semiconductor for $335 Million

Cirrus Logic, Inc. is a fabless semiconductor company based in the U.S. that supplies analog, mixed-signal, and audio digital signal processor (DSP) integrated circuits (ICs) for mobile and consumer applications.

Recently, the company announced its entry into an agreement to acquire Lion Semiconductor. Lion Semi is a California-based company that develops power and management ICs for power-efficient operations and fast battery charging. The acquisition is worth $335 million and will provide Cirrus Logic with intellectual property and products for mobile and consumer applications, as well as provide an opportunity to venture into new markets. Cirrus Logic will be giving particular focus to its mixed-signal business.

Image used courtesy of Lion Semiconductor

The Acquisition

The transaction for the acquisition has been approved by both companies and will close within 30 days, subject to conditions. Lion Semi is expected to be immediately accretive to Generally Accepted Accounting Principles (GAAP) and non-GAAP earnings per share. This is expected to contribute to roughly $60 million in revenue between the time of the closing of the deal and the end of the 2022 fiscal year.

In a recent news release, the President and CEO of Cirrus Logic, John Forsyth, commented: “The acquisition of Lion Semiconductor adds further momentum to our strategy of applying our mixed-signal expertise to new markets and driving growth through innovation in areas such as power.” Forsyth added: “Lion’s proprietary fast-charging products and robust intellectual property portfolio are expected to contribute meaningfully to revenue growth in the coming years, strengthen the company’s position to pursue exciting new opportunities, and significantly expand our addressable market.”

Lion Semi can offer Cirrus Logic switched-cap power IC technology that was designed to help provide better heat dissipation, lower power loss, and consumption. Mobile devices can remain cool and use energy more efficiently, which can help keep devices working well for longer. Lion Semi’s switched-capacitor architectures are being used to enhance wired and wireless fast-charging user experiences and are currently being used in many flagship and mid-tier smartphones. The company will be able to bring Cirrus Logic its network of customers in the smartphone and laptop space.

One of Cirrus Logic’s campuses. Image used courtesy of Cirrus Logic

In the same news release, the CEO of Lion Semi, Wonyoung Kim, said: “We are thrilled to become a part of Cirrus Logic’s remarkable team and culture.” Kim added: “Cirrus Logic excels in delivering advanced mixed-signal technologies to the industry’s most demanding customers. We believe our world-class charging technology and innovative switched-capacitor architectures will help put even more Cirrus Logic solutions at the heart of the world’s best battery-powered products.”

Through the acquisition, Cirrus Logic will be able to grow its business and broaden its portfolio of technologies to grow with the fast-growing market for power applications in smartphones, laptops, and other devices. The company expects to grow its mixed-signal business and take on new business opportunities.