Microchip Technology announced it acquired Wellington, New Zealand-based startup Tekron International Limited last Friday. Before being bought out, Tekron specialized in manufacturing GPS and precision timing devices. Neither company revealed the financial terms or timeline of their merger.
Based on statements made in its media announcement, Microchip will completely absorb Tekron, its portfolio, and staff.
A Primer on Tekron
Established in 2002, Tekron introduced itself to the world with the TCG01 timing generator. Local consumers found the affordable atomic clock – which supports GPS and GLONASS platforms – highly appealing. Following its domestic success, the firm quickly expanded overseas and made its products available in over 70 countries.
As its footprint grew larger, Tekron’s engineers worked to build out its lineup.
Its pre-acquisition catalog included satellite timing devices, miniature atomic clocks, multiport network time servers, and PTP translators. The startup also made its products applicable to a wider range of industries. As an independent firm, it sold synchronization solutions to corporations operating in the power, industrial, enterprise, security, and telecom sectors.
Why Microchip Acquired Tekron
In a press release, Microchip explained it acquired Tekron because it wants to establish a presence within the synchronization and timing market. By purchasing an innovative vendor within the space, the company will be able to accelerate its roadmap.
Randy Brudzinski, VP of Microchip’s Frequency and Timing Systems division, said his firm plans to deploy its new subsidiaries technology in a range of sectors. He noted the chipmaker would offer Tekron’s products to financial, data center, industrial, and communications clients.
Ian Mills, the outgoing Chairman of Tekron’s board, identified a few reasons why the semiconductor firm bought his company.
Mills said both corporations had a history of successfully developing and releasing specialized products that fulfill highly demanding functions. He also commented that the timing device startup had made inroads in industries Microchip is eager to pursue, like renewable energy.
In the fiscal first quarter of 2021, Microchip generated $1.3 billion in revenue despite the coronavirus pandemic’s ongoing impact. With Tekron’s products in its portfolio and the semiconductor sector recovering from the global health crisis, the corporation should experience some meaningful near-term growth.