$150 Million Transaction to Bolster Adoption of Edge AI, Offering Complete Turnkey Solutions Integrating Sensors, Processors and Software
IRVINE, Calif., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Syntiant Corp., the recognized leader in low power edge AI deployments, today announced it has signed a definitive agreement to acquire certain assets of Knowles Corporation’s (: KN) Consumer MEMS Microphones (CMM) business.
Knowles’ CMM division is an industry-leading manufacturer and supplier of high performance SiSionic™ micro-electro-mechanical systems (MEMS) microphones that are essential for voice and audio applications in smartphones, smart speakers and wearables, among other market segments, including autos and household appliances. 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 existing AI capabilities in hardware and machine learning models.
“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,” said Kurt Busch, CEO at Syntiant. “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.”
More than 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.
“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,” Busch added. “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.”
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. The financing is being led by Structural Capital and Boardman Bay Capital Management. The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Needham & Company, LLC is serving as the exclusive financial advisor to Syntiant and Latham & Watkins LLP is serving as its legal advisor.
About Syntiant
Founded in 2017 and headquartered in Irvine, Calif., Syntiant Corp. is a leader in delivering hardware and software solutions for edge AI deployment. The company’s purpose-built silicon and hardware-agnostic models are being deployed globally to power edge AI speech, audio, sensor and vision applications across a wide range of consumer and industrial use cases, from earbuds to automobiles. Syntiant’s advanced chip solutions merge deep learning with semiconductor design to produce ultra-low-power, high performance, deep neural network processors. Syntiant also provides compute-efficient software solutions with proprietary model architectures that enable world-leading inference speed and minimized memory footprint across a broad range of processors. The company is backed by several of the world’s leading strategic and financial investors including Intel Capital, Microsoft’s M12, Applied Ventures, Bosch Ventures, the Amazon Alexa Fund, and Atlantic Bridge Capital. More information on the company can be found by visiting www.syntiant.com or by following Syntiant on Twitter @Syntiantcorp orLinkedIn.
About the Knowles CMM Business
Knowles' CMM business designs and manufactures micro-electro-mechanical systems (MEMS) microphones, known as SiSonic™, which enable voice control communications and superior audio recording for customers across the ear, compute, IoT and smartphone market segments.
About Structural Capital
Structural Capital is an investment firm that provides growth capital loans to venture capital and private equity-backed companies in technology and major growth and innovation sectors. The firm provides flexible financing solutions to high-growth companies seeking a less dilutive source of flexible capital. Since starting in 2014, Structural Capital has successfully launched four funds and manages approximately $1 billion of capital commitments. For more information, please visit www.structuralcapital.com.
About Boardman Bay Capital Management
Boardman Bay Capital Management is a specialized asset manager with deep expertise in the technology sector. Operating since 2012, the firm draws on decades of experience as both operators and investors in global technology. Boardman Bay has built a distinctive portfolio across public and private markets, with a uniquely dedicated strategy focused on the optical, semiconductor and “hard technology” companies that are reshaping data centers and global technology infrastructure. Managing both venture and public equity funds, Boardman Bay is a trusted partner for technology companies poised for their next phase of transformational growth.
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