ALGM - Allegro MicroSystems Completes Acquisition of Crocus Technology to Accelerate Innovation in TMR Sensing Technology | Benzinga
-- Tunnel Magnetoresistance ("TMR") Represents Fastest Growing Technology in Magnetic Sensing with an Estimated 30% CAGR Through 2030 --
MANCHESTER, N.H., Oct. 31, 2023 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. ("Allegro") (NASDAQ:ALGM), a global leader in power and sensing semiconductor technology for motion control and energy efficient systems, today announced that it has completed the acquisition of Crocus Technology, a leader in advanced TMR sensor technology, for $420 million in cash, subject to customary working capital adjustments. This acquisition accelerates Allegro's TMR roadmap and strengthens its leading position in the magnetic sensing market.
"On behalf of the entire company, I am thrilled to welcome the Crocus team to Allegro. We look forward to working together to bring Crocus' TMR technology and our combined value proposition to our customers," said Vineet Nargolwala, President and CEO of Allegro. "This highly strategic acquisition demonstrates Allegro's commitment to its leadership position in magnetic sensing. Further, we expect this combination to solidify Allegro as a leading TMR semiconductor company by leveraging a unique opportunity to drive broader adoption of TMR technology across high-growth strategic focus areas, including e-Mobility, Clean Energy and Automation."
The acquisition was funded by a combination of cash on hand and a new seven-year $250 million senior secured term loan.
About Allegro MicroSystems
Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits ("ICs") and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro's diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release should be considered forward-looking statements, including, without limitation, statements regarding the expected benefits of a business combination with Crocus Technology. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future ...