Texas Instruments said it plans to buy Norway-based RF transceiver maker Chipcon for an estimated $200 million in cash. The deal will position TI as an expert designer of short-range wireless chips used in consumer electronics and security systems. TI said Chipcon will remain in Norway and operate as a subsidiary. Chipcon's short-range wireless chip products operate on the ZigBee standard, a low-power wireless standard that is approved by the IEEE that is similar to WiFi and Bluetooth. ZigBee advocates say the technology is a low power alternative to other wireless standards, but because it operates at slower speeds and at a shorter range, the technology is aimed at the home and industrial automation markets.
Investors in Chipcon are reportedly happy with the deal as they only put in about $13 million in VC. Analysts say the deal is a good one for TI as it was in need of more expertise on the short-range wireless side. As TI takes Chipcon's products global, I smell another hype cycle for the "smart" home. Never shall a casserole burn again.
For more on the TI acquisition:
- take a look at this article from Red Herring