Analog Devices (ADI) will acquire privately held Alif Semiconductor for $1.35 billion in cash, the companies announced on Wednesday, as ADI expands its technology for running artificial intelligence directly on devices.
The deal will combine ADI’s sensing, signal processing and power management technologies with Alif’s AI processors, enabling customers to develop systems capable of analyzing data and responding in real time.
Pleasanton, California based Alif develops low power processors that integrate AI computing with sensor data, connectivity and security features for consumer and industrial applications. Its chips are already shipping and have attracted customers in both sectors.
ADI will pay $1.35 billion upfront, with additional contingent payments of up to $200 million possible under the agreement. PJT Partners is advising ADI, while Qatalyst Partners is advising Alif.
The acquisition comes as demand for AI enabled chips grows beyond data centres into physical devices and industrial systems. Last month, ADI raised its fourth quarter revenue and profit forecasts above Wall Street expectations after reporting a 40% increase in third quarter revenue.
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