- GeneralSPAC
- January 6, 2021
- 4 minutes read
Achronix Heads For SPAC Merger
Achronix, a Santa Clara-based semiconductor company specializing in FPGA products, is the next target for a merger with a special-purpose acquisition…
Achronix, a Santa Clara-based semiconductor company specializing in FPGA products, is the next target for a merger with a special-purpose acquisition company (SPAC), now in talks to merge with ACE Convergence Acquisition Corp in a $2 billion deal, Bloomberg reports.
According to Bloomberg, Achronix and ACE are in advanced merger talks and could announce an agreement as soon as this month. As often seen, ACE is said to be in talks with investors to raise more money to fund a merger with Achronix.
Achronix is a fabless semiconductor company that was founded in 2004 with technology licensed from Cornell University as its bedrock. The company specializes in producing field-programmable gate arrays (FPGAs), which are special types of chips unique for their function being able to be altered by software programs even after installation in a device.
FPGAs can be found in everything ranging from video cameras to automobiles and airplanes. It represents a market estimated to be worth $10 billion in 2020 and projected to grow to $19 billion by 2027.
Achronix is known to have achieved profitability in 2016 and achieved sales of over $100 million in 2017. According to Crunchbase data, the company is backed by some $136 million in venture funding from investors including Battery Ventures, Easton Capital, and New Science Ventures.
That ACE Convergence Acquisition Corp is looking to merge with a semiconductor company isn’t surprising given that the SPAC is led by Behrooz Abdi, himself a semiconductor veteran who was the former CEO of the chipmaker InvenSense. Abdi is seemingly sticking hard to its roots in the semiconductor industry and looking to take Achronix public.
ACE Convergence Acquisition Corp raised $230 million from investors in its initial public offering last year July.
