SiTime Corporation announced it has entered into an exclusive agreement with Aura Semiconductor to acquire its clock products and license all of its clock IP. This is an all-cash transaction, comprised of fixed payments totaling $148 million, and earnouts capped at $120 million. The transaction is expected to close by the end of 2023.
SiTime will hold exclusive, perpetual, and irrevocable rights to sell existing and new products based on Aura’s IP and clocking portfolio. $36 million of the fixed payments will be paid at close, $75 million in 2024 and $37 million in 2025. All these payments are tied to product deliveries from Aura. The earnout payments will be based on various multiples of revenue generated from the acquired products, during the period from 2023 through 2028. As part of the transaction, SiTime is opening an office in Bengaluru, India with an engineering and support team there.
Barclays acted as the exclusive financial advisor to SiTime.