KN Knowles Corporation

Syntiant Corp., the recognized leader in low power edge AI deployments, today announced it has completed the acquisition of Knowles Corporation’s (NYSE: KN) Consumer MEMS Microphones (CMM) business for $150 million in cash and stock.

Knowles’ CMM division is an industry-leading manufacturer and supplier of high performance SiSonicTM micro-electro-mechanical systems (MEMS) microphones that are essential for voice and audio applications in smartphones, smart speakers and wearables, among other market segments, including autos and household appliances.

“The addition of the Knowles CMM business gives Syntiant a leadership position in the rapidly growing, multibillion-dollar MEMS microphone market, while delivering new solutions that combine cutting-edge sensors, processors and high-performance machine learning models, redefining the future of AI-enabled audio and voice interfaces,” said Kurt Busch, CEO of Syntiant. “As large language models continue to transform industries by enabling advanced natural language understanding and automation, we are accelerating the development of next-generation solutions for autonomous vehicles, smart home devices, industrial automation and beyond. Moreover, this acquisition brings invaluable talent and global customer relationships to Syntiant, reinforcing our ability even further to innovate and scale globally.”

More than 50 million Syntiant Neural Decision Processors (NDPs) and deep learning models have been deployed worldwide, delivering highly accurate, artificial intelligence in edge devices with ultra-low- power consumption. The integration of advanced MEMS sensors into Syntiant’s existing hardware-software capabilities provides customers with a total edge AI audio solution that simplifies product development and accelerates time-to-market, while remaining scalable, secure and customizable to fit a wide range of applications.

Knowles’ CMM division generated revenue of approximately $256 million in 2023. The acquisition was financed through a collaborative effort led by Khazanah Nasional Berhad and Boardman Bay Capital Management, which provided equity funding, and Structural Capital, which arranged debt financing.

“The shifting global supply chain and the rising demand for chips in emerging technologies like AI have created a significant opportunity for Malaysia to advance in the semiconductor and advanced manufacturing value chain," said Dato' Amirul Feisal Wan Zahir, managing director of Khazanah Nasional Berhad. “Khazanah is committed to supporting Syntiant’s vision for the growth of Malaysia’s semiconductor ecosystem, while the acquisition aligns with our goal of fostering technological advancements in the region and promoting national economic development.”

“We see this acquisition as a pivotal moment that will enable Syntiant to offer unparalleled innovations in intelligent voice and audio solutions,” said Will Graves, chief investment officer at Boardman Bay Capital Management. “Kurt and his team are true visionaries. Our financial commitment reflects Boardman Bay’s deep confidence in their ability to drive the future of edge AI.”

“Syntiant’s commitment to innovation aligns perfectly with our mission to empower innovative companies,” said Kai Tse, chief investment officer of Structural Capital. “We believe this deal will accelerate Syntiant’s growth and strengthen its market presence, while further enhancing its ability to deliver transformative solutions across a wide range of industries.”

Needham & Company, LLC served as the exclusive financial advisor to Syntiant and Latham & Watkins LLP served as its legal advisor.

About Syntiant    Founded in 2017 and headquartered in Irvine, Calif., Syntiant Corp. is a leader in delivering hardware and software solutions for edge AI deployment. The company’s purpose-built silicon and ML models are being deployed globally to power edge AI speech, audio, sensor and vision applications across a wide range of consumer and industrial use cases, from earbuds to automobiles. Syntiant is backed by several of the world’s leading strategic and financial investors including Intel Capital, Microsoft’s M12, Applied Ventures, Bosch Ventures, the Amazon Alexa Fund, and Atlantic Bridge Capital. More information on the company can be found by visiting www.syntiant.com or by following Syntiant on Twitter @Syntiantcorp or LinkedIn.   

About the Knowles CMM BusinessKnowles' CMM business designs and manufactures micro-electro-mechanical systems (MEMS) microphones, known as SiSonicTM, which enable voice control communications and superior audio recording for customers across the ear, compute, IoT and smartphone market segments.

About Khazanah Nasional BerhadKhazanah Nasional Berhad (“Khazanah”) is the sovereign wealth fund of Malaysia entrusted to deliver sustainable value for Malaysians. In line with its long-term strategy of Advancing Malaysia, Khazanah aims to deliver its purpose by investing in catalytic sectors, creating value through active stewardship, increasing its global presence, as well as building capacity and vibrant communities for the benefit of Malaysians. For more information on Khazanah, visit www.khazanah.com.my/.

About Boardman Bay Capital ManagementBoardman Bay Capital Management is a specialized asset manager with deep expertise in the technology sector. Operating since 2012, the firm draws on decades of experience as both operators and investors in global technology. Boardman Bay has built a distinctive portfolio across public and private markets, with a uniquely dedicated strategy focused on the optical, semiconductor and “hard technology” companies that are reshaping data centers and global technology infrastructure. Managing both venture and public equity funds, Boardman Bay is a trusted partner for technology companies poised for their next phase of transformational growth.

About Structural CapitalStructural Capital is an investment firm that provides growth capital loans to venture capital and private equity-backed companies in technology and major growth and innovation sectors. The firm provides flexible financing solutions to high-growth companies seeking a less dilutive source of flexible capital. Since starting in 2014, Structural Capital has successfully launched four funds and manages approximately $1 billion of capital commitments. For more information, please visit www.structuralcapital.com.

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