Crocus Technology Acquired By Allegro Microsystems To Accelerate Innovation In Tmr Sensing Technology

Crocus Technology, a frontrunner in advanced Tunnel Magnetoresistance sensor technology, has announced a definitive agreement for its acquisition by Allegro MicroSystems, Inc., a global leader in semiconductor technology for power, sensing, motion control, and energy-efficient systems. The acquisition is valued at $420 million in cash.

Allegro MicroSystems is set to benefit from Crocus's distinct technology and product offerings, well-suited for growth applications in e-mobility, clean energy, and automation. Crocus brings over 200 patents to the table. The magnetic sensing market is projected to exceed $5 billion by 2030, with Tunnel Magnetoresistance (TMR) being the fastest-growing segment, estimated to approach a $1 billion addressable market by 2030. TMR's anticipated 30% Compound Annual Growth Rate (CAGR) is primarily driven by automotive and industrial applications, surpassing the overall growth rate of the magnetic sensing market.

Vineet Nargolwala, President and CEO of Allegro, expressed the company's focus on innovation and high-performance solutions enabled by TMR technology. The acquisition aligns seamlessly with Allegro's growth objectives and emphasis on e-mobility, clean energy, and automation trends. Nargolwala emphasized the benefits of the acquisition in strengthening their magnetic sensor leadership and expanding their product offerings to cater to customer needs.

Zack Deiri, President, and CEO of Crocus, highlighted the synergy between Crocus and Allegro. He underscored their shared goal of creating superior and differentiated customer solutions by combining advanced TMR technology with Allegro's industry partnerships. Deiri expressed confidence in accelerating TMR adoption in specific automotive and industrial markets, further optimizing the potential of Crocus's TMR technology alongside Allegro.

The acquisition will be financed using a combination of available cash resources and a new term loan. The transaction has received approval from the boards of directors of both companies. Pending customary regulatory approvals and closing conditions, the transaction is expected to conclude by the close of calendar year 2023.

Source:prnewswire.com