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© mikael damkier dreamstime.com Business | January 13, 2021

Achronix to list on Nasdaq via merger with ACE Convergence

FPGA and embedded FPGA specialist, Achronix Semiconductor, has entered into a business combination agreement with special-purpose acquisition company ACE Convergence Acquisition Corp., which result in a combined entity which will continue as a publicly listed company.

Upon closing of the transaction, the combined operating entity will be named Achronix Semiconductor Corporation and will be listed under the ticker symbol ACHX. Demand for FPGA-based data accelerators is driven by the rapid expansion of high-growth markets, including AI, Cloud, 5G, and ADAS. Achronix’s semiconductor portfolio targets the nearly USD 10 billion data acceleration market, which is expected to have double-digit CAGR through 2025, according to data from Semico Research. As compute performance requirements are now doubling in as little as three to four months, the need for dedicated FPGA-based hardware accelerators is growing rapidly. Customer validation of Achronix’s products is substantiated by nearly USD 240 million in orders received in 2020. “We are very excited to have found the ideal merger partner in Achronix, the last remaining independent, high-end FPGA player,” says Behrooz Abdi, CEO and Chairman of ACE, in a press release. “John Lofton Holt and Robert Blake have created a truly disruptive semiconductor company, with highly differentiated data acceleration FPGA products, complemented with a highly innovative embedded FPGA IP business model. Further bolstering Achronix’s robust free cash generation with proceeds from the merger will accelerate deployment of the company’s data acceleration solutions and position Achronix to fast track additional strategic growth initiatives.” “The next era of growth and opportunity is in the trillions of connected devices providing compute-intensive intelligence, all fueled by network connectivity and 5G,” adds Robert Blake, Achronix’s Chief Executive Officer. “Achronix’s technology was designed to address the insatiable demand for new hardware-based data acceleration, which we believe is resulting in significant long-term growth opportunities for our company. We are excited to partner with Behrooz and the ACE team at this inflection point in the company’s trajectory to capitalize on our design pipeline in excess of $1.1 billion, as we continue to create value as a public company.” Upon the closing of the transaction, the combined company will be led by the Achronix management team including CEO Robert Blake and CFO Mark Voll. Behrooz Abdi and Dr. Sunny Siu of ACE. The transaction reflects an implied equity value of the combined company of USD 2.1 billion, based on current assumptions.
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October 14 2021 5:14 pm V18.25.1-2