Knowles to sell its consumer MEMS microphone business
Following a strategic review, Knowles Corporation has entered into a definitive agreement to sell its Consumer MEMS Microphones (CMM) business to Syntiant Corp for USD 150 million.
The sale of the business supports Knowles' transformation into an industrial technology company, consisting of its Precision Devices (PD) and MedTech & Specialty Audio (MSA) segments, primarily serving the aerospace, defence, medtech, industrial, and electrification markets. On a pro forma basis, the remaining Knowles businesses, inclusive of Cornell Dubilier’s full year results, had USD 560 million of revenue in 2023.
Knowles will receive USD 150 million in total consideration, consisting of USD 70 million in cash and USD 80 million in Syntiant preferred stock. The closing of the transaction – which is subject to certain regulatory approvals – is expected to occur in the fourth quarter of 2024.
"After performing an in-depth strategic review, we believe this Transaction with Syntiant is the best outcome for our shareholders, employees, customers, and suppliers. The Transaction provides Knowles with the ability to protect the intellectual property of our market-leading Hearing Health business while maximizing value for shareholders," said Knowles Chief Executive Officer Jeffrey Niew, in a press release. "Today's announcement represents another significant milestone in Knowles' transformation into a premier industrial technology company, building upon the success of our recent Cornell Dubilier acquisition."
