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- Allegro leverages 200+ patents and Crocus’ innovation to address growing demand in sectors boosted by this acquisition.
- By 2030, it is anticipated that the magnetic sensing industry will have grown significantly, with projections rising beyond $5 billion.
- The TMR technology’s anticipated 30% CAGR propels its growth, surpassing the magnetic sensing market’s expansion rate, driving potential expansion.
Allegro MicroSystems, Inc. has officially made the strategic acquisition of Crocus Technology for $420 million in cash. Allegro MicroSystems, Inc. is a well-known participant in the power and sensing semiconductor technology for motion control and energy-efficient systems. The acquisition signifies significant progress in sensor tech, poised to notably impact automation, clean energy, and e-mobility industries.
Crocus Technology: A Leader in TMR Sensor Technology
- Privately held Crocus Technology has made a name for itself as a pioneer in cutting-edge Tunnel Magnetoresistance (TMR) sensor technology.
- Anticipated to be pivotal in high-growth sectors, this tech’s unique features and prowess ensure a substantial impact.
A Perfect Fit for High-Growth Industries
- Allegro MicroSystems prioritizes e-Mobility, Clean Energy, and Automation, recognizing alignment with Crocus Technology’s strengths in their goals.
- Allegro leverages 200+ patents and Crocus’ innovation to address growing demand in sectors boosted by this acquisition.
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Projected Growth in Magnetic Sensing Market
- By 2030, it is anticipated that the magnetic sensing industry will have grown significantly, with projections rising beyond $5 billion.
- In this industry’s landscape, the TMR sector is expected to experience the fastest growth, approaching a $1 billion market by 2030.
- The TMR technology’s anticipated 30% CAGR propels its growth, surpassing the magnetic sensing market’s expansion rate, driving potential expansion.
Allegro’s Strategic Investment in TMR
- Allegro MicroSystems’ decade-long commitment to TMR tech yields innovative solutions, empowering clients in creating high-performance devices.
- TMR technology’s application grows with electrification and automation trends, becoming highly adaptable, expanding its utility and scope.
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Enhancing Product Offering and Expertise
- Along with supporting Allegro’s TMR plan, the purchase of Crocus Technology also considerably increases its position in the magnetic sensors market.
- Allegro’s change diversifies products, offering more options. Crocus’ tech expertise aids Allegro in broadening with specialized knowledge.
Aligned Vision of Leaders
Allegro’s president and CEO, Vineet Nargolwala, expressed his pleasure for the purchase and emphasized how Crocus’ technology fits in well with Allegro’s expansion plans. The blend of abilities should expedite TMR’s tech advancement and enhance the overall customer experience, a joint anticipation.
Unified Expertise for Enhanced Solutions
Crocus President and CEO Zack Deiri expressed his enthusiasm for the partnership and emphasized the joint efforts to produce excellent and distinctive client solutions. Allegro’s industry ties and Crocus’ TMR integration will speed up TMR adoption in Automotive and Industrial sectors through connections and technology.
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Acquisition Execution and Funding
Crocus Technology plans to pay for the anticipated purchase using its already-existing cash reserves and by issuing additional debt. The boards of directors of both firms have given the deal the go-ahead. Subject to regular regulatory clearances and closing conditions, the transaction is expected to close by the end of 2023. Importantly, the agreement doesn’t necessitate the consent of the owners of Allegro.
Regarding sensor technology, Allegro MicroSystems’ acquisition of Crocus Technology represents a significant advancement. Utilizing TMR technology’s distinct traits, this strategy addresses rapid expansion needs across diverse sectors through tactical decision-making. Through collaboration, industry leaders will revolutionize e-Mobility, Clean Energy, and Automation, driving transformative changes and innovations.