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Adesto completes its acquisition of Echelon

Adesto Technologies, a provider of application-specific semiconductors and systems for the IoT era, is says it has completed its acquisition of Echelon Corporation.
The definitive agreement was initially announced back in late June, 2018, and Echelon shareholders approved the transaction at a shareholders meeting held on September 13, 2018. The transaction closed and became effective on September 14, 2018, with each share of Echelon being converted into the right to receive USD 8.50 in cash, without interest. The cash transaction represents a total equity value of approximately USD 45 million, and a total enterprise value of about USD 30 million.

Adesto expects to realise cost synergies of approximately USD 6 million to USD 8 million in the first 12 months, with more than half to be realized in the fourth quarter of 2018. The Company also expects the acquisition to be accretive to EBITDA and non-GAAP EPS within the first 12 months.

“This acquisition marks a pivotal step for Adesto as we continue to expand our innovative solutions to help customers unlock the true potential of the IoT," says Narbeh Derhacobian, CEO of Adesto, in a press release. "We now provide not only semiconductors, but also open-standard networking platforms and tools for connecting, monitoring and controlling devices in commercial and industrial IoT deployments. We have significantly expanded our served available market, while also increasing our revenue and potential for margin expansion.”

The Echelon group will now become Adesto's Embedded Systems Division, led by Chris Jodoin, former SVP of operations and planning at Echelon.
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December 05 2018 3:01 pm V11.10.4-2