SiTime Corporation acquires time-related IP for $148 million

SiTime Corporation announced this week that it agreed with Aura Semiconductor to purchase its clock products and license all its clock IPs. This agreement between both companies allows SiTime to hold exclusive, perpetual, and irrevocable rights to sell existing and new products based on Aura’s IP and clocking portfolio.

Rajesh Vashist, CEO and chairman of SiTime said, “SiTime’s vision is to transform all categories of the $10 billion timing market. Since our IPO in 2019, our singular focus has been on solving the most difficult problems in the oscillator category, and that has paid off. In these four years, we’ve grown from 60 to 150 unique products, and the price of our highest-value oscillator has grown tenfold. With this acquisition, we bring our focus to the category of clocks, adding 20 best-in-class clocks now, and another 20 by the end of 2024.”

He added, “Before today, customers were forced to deal with separate Clock and Oscillator vendors. Uniquely, SiTime will offer both categories, standalone and engineered to be optimized with each other, for our core markets of communications, data center, and AI.”

The deal is scheduled to be closed by the end of the year, with $36 million of the fixed payments to be paid at close, $75 million in 2024, and $37 million in 2025.