Silicom To Acquire ADI Engineering from Charlottesville, VA.

1 October, 2015

Silicom will pay ADI’s stockholders $10 million in cash at closing. ADI design and produce reference design boards for Intel

Silicom will pay ADI’s stockholders $10 million in cash at closing. ADI design and produce reference design boards for Intel

PCIe board for Intel chipset, developed by ADI Engineering
PCIe board for Intel chipset, developed by ADI Engineering

Silicom Ltd. from Kfar-sava, Israel, announced that it has entered into a definitive agreement to acquire ADI Engineering, a privately-held, US-based provider of Intel-based products targeted at the SDN, NFV, IoT, Cloud computing and Virtualization trends.

Silicom will pay ADI’s stockholders $10 million in cash at closing, and an additional consideration subject to the attainment of certain future performance milestones. The transaction is expected to close in the fourth quarter of 2015.

“We intend to continue building out ADI’s existing profitable business while also incorporating its offering into Silicom’s portfolio for our existing customers,” said Shaike Orbach, Silicom’s President and CEO. “The acquisition will also enable us to address Cloud-related providers of CPE/branch office equipment, NFV edge products suppliers and more.

“In addition, we intend to work together with ADI’s talented development staff to create new products needed by Cloud, NFV and SDN players to keep up with the challenges presented by the rapid growth of data traffic.”

ADI’s products and core technologies are highly complementary with Silicom’s and do not compete with them. In fact, since ADI frequently develops reference designs for upcoming Intel technologies, ADI can leverage its deep technical expertise and early access into a time-to-market edge over the competition.

Steve Yates, ADI’s CEO and Founder, added, “We believe the enhanced momentum of our larger group will accelerate our growth.” After the acquisition, Mr. Yates will join Silicom as President of the ADI Engineering division. Orbach concluded, “We believe this acquisition will strengthen our leadership position in the network appliances industry while expanding our technology and products for the fast-growing Cloud market.”

Silicom’s product portfolio includes multi-port 1/10/40/100 Gigabit Ethernet server adapters, Intelligent Bypass solutions, Encryption accelerators, Ultra Low Latency solutions, Time Stamping and other innovative Smart adapters. These products are available for incorporation directly into our OEM customers’ systems, or provided as part of Silicom’s patented SETAC (Server To Appliance Converter), a unique approach to the provision of high quality standard platforms with modular front connectivity.

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