SMSC, a Nasdaq-listed semiconductor company, has acquired US-based BridgeCo, which makes networked audio technologies, for $40m in cash and up to $27.5m in performance fees.
In 2004, chip makers Intel and Infineon’s corporate venturing fund participated in BridgeCo’s $16m series C financing round, with Intel Capital having previously invested in its B round. Alongside Intel and Infineon Ventures in the C round were mutual fund manager Fidelity’s Ventures unit and venture capital firms Benchmark Capital and Earlybird.
Earlybird invested in 2000 as the company’s first institutional investor.
BridgeCo’s JukeBlox technology is an ARM-based multi-core network media processor used by consumer electronics brands Pioneer, Philips, Denon, Marantz, JBL, B&W and Harmon/Kardon.
Christine King, executive president of SMSC, said: "As consumer companies seek to deliver wireless multimedia ecosystems that are user friendly, the market for solutions that enable consumers to stream music from smartphones, tablets and PCs over a WiFi home network is set to take off at an exponential rate.
"With the acquisition of BridgeCo, we are significantly enhancing our consumer technology prowess as we further position SMSC as a preferred partner to the industry’s top consumer audio device designers for best-in-class wireless audio solutions in the home or car."
For the three months ended March, BridgeCo’s revenue was $2.2m and revenue in the three months ended June 30 is expected to be about $5m.