Parade Technologies, a supplier of video displays and interface ICs headquartered in Silicon Valley, and Cypress Semiconductor, a supplier of high-performance ICs for embedded systems, have announced that they have entered into a definitive agreement under which Parade will acquire Cypress’s TrueTouch Mobile touchscreen business for an aggregate acquisition price of $100m in cash.
Post-acquisition, Parade will provide TrueTouch solutions to mobile customers and expand into other consumer-oriented segments. Markets to be served by Parade will include smartphones, tablets, notebooks/PCs, monitors, wearable technology, GPS systems, digital cameras, and certain industrial segments. Leveraging its deep knowledge and customer relationships, Cypress will continue to provide TrueTouch solutions to its automotive and home appliance customers and CapSense button-replacement solutions to its mobile customers.
Parade believes that this acquisition will substantially expand its addressable market. Combining Parade’s leadership position in Embedded DisplayPort (eDP) timing controllers with Cypress’s state-of-the-art technology in capacitive touch-sensing, Parade expects to provide platform-level solutions with a complete portfolio of products for its display customers. The acquisition will also improve the operational efficiency of the industry supply chain.
“We believe Cypress’s leading technology and unmatched IP portfolio in touch-sensing will provide us with immediate growth opportunities, increasing our scale and diversifying our revenue and customer base,” said Jack Zhao, Chief Executive Officer of Parade. “More importantly, the combination will enable Parade’s roadmap for display and touch integration solutions in mobile display.”
“Mobile capacitive touchscreen solutions are increasingly being integrated directly into the display system,” said Hassane El-Khoury, executive vice president of Cypress’s Programmable Systems Division and Software. “Parade’s advanced display solutions are truly the best in class. Its relationships with Tier 1 PC and consumer electronics manufacturers make it an excellent choice to continue to provide our customers with advanced technology and product roadmaps that the industry requires.”
