Syntiant, a leader in low-power edge AI deployments, announced it signed a definitive agreement to acquire certain assets of Knowles Corporation’s Consumer MEMS Microphones (CMM) business. Syntiant will pay $150 million in cash and stock for Knowles’ CMM business, which generated revenues of $256 million in FY 2023 and $136 million in the first half of 2024. Structural Capital and Boardman Bay Capital Management are leading this financing.
Knowles’ CMM division is an industry-leading manufacturer and supplier of high-performance SiSionicTM micro-electro-mechanical systems (MEMS) microphones that are essential for voice and audio applications in smartphones, smart speakers, and wearables, among other market segments, such as autos and household appliances. And the acquisition will enable Syntiant to offer customers a complete turnkey solution for always-on audio and speech applications, combining MEMS microphones with the company’s AI capabilities in hardware and machine learning models.
Over 50 million Syntiant Neural Decision Processors (NDPs) and deep learning models have been deployed worldwide, delivering highly accurate, cloud-free intelligence to edge devices with ultra-low- power consumption. The integration of advanced MEMS sensors into Syntiant’s existing hardware-software capabilities provides customers with a total-edge AI audio solution that simplifies product development and accelerates time-to-market while remaining scalable, secure, and customizable to fit a wide range of applications.
The deal is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Needham is Syntiant’s exclusive financial advisor, and Latham & Watkins is its legal advisor.
KEY QUOTES:
“We believe almost every microphone of the future will be AI-enabled, as large language models continue to revolutionize industries by improving natural language understanding and automating complex tasks. This acquisition will clearly strengthen our product portfolio, tapping into a multi-billion dollar MEMS market, at the same time enabling Syntiant to offer comprehensive, end-to-end solutions that integrate sensors [microphones], processors and high-performance machine learning models, uniquely positioning Syntiant as the premier provider for AI-driven interfaces.”
“Whether in autonomous vehicles, smart home devices, or industrial automation, a significant number of Syntiant NDP deployments will continue to have a microphone, enabling next-generation AI features like voice commands, speech recognition, echo cancellation, background noise suppression, wake word detection and audio event detection. With this transaction, we also are grateful to be gaining a very talented team with proven technology, world-class multinational operations, and long-term customer relationships serviced around the globe. We look forward to welcoming them to the Syntiant family.”
-Kurt Busch, CEO at Syntiant
