Sony Corp (ADR) (NYSE:SNE) announced that it struck a deal with Altair Semiconductor and other big shareholders to buy the firm for $212 million. The Japanese firm expects to complete the acquisition of the Israeli LTE modem chip innovator early next month. The company indicated that the deal would not have any material impact on its consolidated financial numbers for the fiscal year ending in March.
Expansion Of Existing Business
Sony has also made its objective clear, which is to expand the current business of Altair Semiconductor. The Japanese firm however does not want to prevent the Israeli firm from focusing on R&D in new sensing technologies as well. The combined company stands to gain from developing a fresh line of cellular-connected, sensing component devices.
That would be possible by integrating Sony’s sensing technologies like the Global Navigation Satellite System or GNSS, and image sensors with Altair’s modem chip technology. The objective is to take advantage of the wearable internet devices market that is witnessing continued expansion. Sony also indicated that it would focus on delivering component devices featuring sensing and communication capabilities.
Sony’s acquisition could end up helping Altair more than Sony in the end as Altair’s product would gain wider acceptance and its R&D would also get a big boost.