There is an additional earn-out provision based on the achievement of certain milestones by the end of calendar year 2019. S3 Semiconductors will continue to operate under its current operating model with design centers in Dublin, Cork, Prague and Lisbon as a business unit of Adesto.
Adesto said the acquisition will expand its portfolio of products and technologies in analog mixed-signal, RF and IP, with additional selling opportunities into IoT.
"S3 Semiconductors has a proven track record of designing and delivering differentiated ASIC products, and an extensive IP portfolio developed by a talented team of design engineers over many years," said Narbeh Derhacobian, CEO of Adesto, in a statement.
Dermot Barry, vice president and general manager of S3 Semiconductors, commented, "Joining forces with Adesto gives us access to a broader sales channel with a diversified group of top-tier customers who will benefit from our ability to deliver highly optimized ASICs with unrivaled cost economies."
Adesto also announced its first quarter financial results. The company made a net loss in 1Q18 of $1.1 million on revenue of $15.3 million, up 35.3 percent from $11.3 million in 1Q17. The net loss was reduced from $2.8 million in 1Q17. For 2Q18, Adesto expects revenue to increase to a range between $18.1 million and $19.0 million, which includes approximately $1.5 to $2.0 million of expected revenue contribution from S3 Semiconductors.
The S3 Group sold off its TV software business to Accenture in 2015 and the disposal of S3 Semiconductor leaves S3 Group as a connected health software company.
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