indie Semiconductor, Inc. (Nasdaq: INDI), an Autotech solutions innovator,
announced it has signed a definitive agreement to purchase TeraXion Inc., a
market leader in the design and manufacture of innovative photonic
components. This acquisition accelerates indie’s vision of becoming a
semiconductor and software level solutions provider for multiple sensor
modalities spanning advanced driver-assistance systems (ADAS) and autonomous
Since their founding in 2000, TeraXion has built a solid industry reputation
based on innovative and highly reliable components, underpinned by more than
30 global patents. The Company produces low noise lasers, Bragg gratings and
integrated photonic elements to address high-performance applications. More
recently, TeraXion was an optical sensing reference design partner of indie,
supporting next-generation Frequency Modulated Continuous Wave (FMCW)
systems for automotive light detection and ranging (LiDAR).
“Given the critical role LiDAR plays in achieving maximum levels of safety
for assisted and self-driving cars, we are excited to welcome TeraXion’s
world class design team and integrate their differentiated IP and product
portfolio,” said Donald McClymont, indie’s co-founder and chief executive
officer. “Specifically, TeraXion has developed leadership laser technologies
that, when optimized together with our SoC solutions, enable order of
magnitude improvements in both system performance and cost. Accordingly,
this highly synergistic combination built on a shared vision and strong
cultural fit, positions indie to accelerate mass market deployments of LiDAR
“TeraXion is thrilled to be joining forces with indie to take our business
to the next level,” said Ghislain Lafrance, TeraXion’s president and chief
executive officer. “By combining indie’s mixed-signal, DSP, software and
power management experience with our laser and sensing technologies,
together we intend to enable truly unparalleled solutions for ADAS and
autonomous driving as well as adjacent high reliability applications.” Mr.
Lafrance plans to join indie’s senior management team and continue to lead
TeraXion’s operations in Quebec.
indie is at the forefront of disruptive semiconductor and software solutions
for LiDAR, allowing its customers to create differentiated platforms that
will help unleash next-generation driver-assistance systems and ultimately
enable true autonomous driving. Via its holistic systems approach, indie is
addressing the market need for comprehensive, cost-effective architectures
that enhance the circle of safety and help fulfill the promise of the
tomorrow’s vehicles today. According to a March 2021 MarketWatch report, the
global automotive LiDAR segment is expected to grow at a 28 percent compound
annual growth rate off a 2020 base, creating a $3.2 billion addressable
market by 2027.
Based on indie’s closing stock price as of August 30, 2021, indie will pay
approximately US$159 million for TeraXion, comprised of US$80 million in
cash plus a fixed number of eight million indie Class A common shares. The
transaction has been approved by the boards of directors of both indie and
TeraXion and is expected to close in the fourth quarter of 2021, subject to
customary closing conditions. Excluding any non-recurring
acquisition-related charges and amortization of intangibles, indie expects
the acquisition to be immediately accretive and will provide more financial
details during its next earnings conference call.
indie is empowering the Autotech revolution with next-generation automotive
semiconductors and software platforms. We focus on edge sensors for Advanced
Driver Assistance Systems including LiDAR, connected car, user experience
and electrification applications. These technologies represent the core
underpinnings of both electric and autonomous vehicles, while the advanced
user interfaces transform the in-cabin experience to mirror and seamlessly
connect to the mobile platforms we rely on every day. We are an approved
vendor to Tier 1 partners and our solutions can be found in marquee
automotive OEMs around the world. Headquartered in Aliso Viejo, CA, indie
has design centers and sales offices in Austin, TX; Boston, MA; Detroit, MI;
San Francisco and San Jose, CA; Budapest, Hungary; Dresden, Germany;
Edinburgh, Scotland and several locations throughout China.
Please visit us at www.indiesemi.com to learn more.
TeraXion is a leader in the design and manufacturing of innovative, high-end
components incorporating low noise lasers, Bragg gratings and integrated
photonics. Our unique expertise makes us a partner of choice for OEMs and
system vendors addressing the ultrafast, high-power laser, optical
communications, fiber optics and optical remote sensing markets.
For more information, please go to www.TeraXion.com.