Today, Valens Semiconductor (NYSE: VLN), a leader in high-performance connectivity, announced the acquisition of Acroname, a pioneering company specializing in advanced automation and control technologies. The acquisition enables Valens to expand its position in the industrial market with a holistic USB-focused offering that includes Valens’ innovative USB extension chipsets, augmented by Acroname’s unique technology and expertise. The synergies between the two companies will allow customers to accelerate the introduction of new innovative products to market.
The industrial and machine vision markets are progressing in the transition to USB-connected cameras, with USB3 Vision cameras accounting for nearly 30% of the connectivity interfaces. With its expertise in software control, telemetry data, USB-PD and robust build quality, Acroname has been a leading supplier of high-end programmable USB hubs, switches, and test automation systems for industrial applications. Combined with Valens’ innovative VS6320 chipset – the only single-chip 100m industrial-grade copper SuperSpeed USB extension on the market – Valens can provide a holistic solution for USB peripherals that include both extension and fully programmable, telemetry rich, switching of USB signals. Combining the expertise of Valens and Acroname will open new opportunities for innovative solutions in the industrial machine vision, test automation, and other markets affected by the limitations of USB.
Acroname designs, develops, and distributes products for applications in manufacturing automation, AV conference rooms, managed IT services, mobile device management, and embedded robotic control systems. Based in Boulder, Colorado, and founded in 1994, Acroname’s system automation platform, BrainStem®, provides highly modular and scalable hardware and software tools, including tools for management of USB and USB-PD, used in OEM applications around the world. Over 400,000 BrainStem powered devices are deployed in the field today, testing some of the world’s largest volume consumer products.
“We are excited to welcome Acroname to the Valens team,” said Gideon Ben Zvi, CEO of Valens Semiconductor. “By incorporating Acroname’s technology and expertise into our USB offering, we will be able to deliver a unique value proposition to the industrial market, enabling the long-distance extension and seamless switching of Hi-Speed and SuperSpeed USB devices. This acquisition, our first M&A transaction, is an important milestone in our strategy of expanding our offering to multiple industries and increasing our value add for our customers.”
“Valens is a company that shares our vision of enabling high-performance connectivity for the industrial market,” said Justin Gregg, CEO of Acroname. “We’re thrilled to become part of a company that aligns with our core values – customer-centric, technology-driven, and with a strong spirit of innovation. Our products will perfectly complement Valens’ offering, and the whole team is excited about creating products that combine data-rich control automation with best-in-class connectivity. We’re looking forward to enhancing Valens’ position as a leader in high-performance connectivity.”
The purchase price for the acquisition was $7.8 million in cash, plus the amount of cash held by Acroname at closing, which was $1.3 million. The purchase price is subject to a post-closing adjustment for net working capital. In addition, the Company shall be obligated to pay the sellers earn out payments of up to $7.2 million depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025, and development of a certain product by June 2026.
About Valens Semiconductor
Valens Semiconductor (NYSE: VLN) is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens’ chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com/.
