CMP Buys Semiconductor Insights for $26 Million
As part of CMP’s continued series of acquisitions under CEO Steve Weitzner;13 in the last two years;the company has just spent $26 million to acquire Ottawa-based Semiconductor Insights, a media and consulting services company targeting the global semiconductor industry.
If it’s got a semiconductor in it (Apple’s iPhone, for example), then SI has probably torn it apart to examine it for a patent analysis. The company’s basic product offerings include a database of 5,000 reports of such "teardowns" and an array of consulting services. CMP has been using the company’s teardown analyses in its own products for four years now.
The sale price will include another $8 million of deferred compensation tied to future performance. The 160-person company will remain in Ottawa and will be housed under CMP’s Technology Innovators Group, reporting to group president Paul Miller.
"Basically, what we get is a proprietary database of 5,000 analytic reports, based on primary data from their 16,000 component teardowns, which gets added to every month; face-to-face consultation, expert witness services, and patent portfolio brokerage," says Miller.
The deal will have a significant impact on future product roll-outs, says Miller. The low-hanging fruit includes new products in the event and TV markets, and significant content opportunities for print and online products. "It will give us the ability to bring SI knowledge of the intellectual property landscape and do global events for new adjacent audiences of investors and patent lawyers, for example," says Miller.
On the TV side, the teardowns will have a particularly wide appeal, adds Miller. "We could launch a TV show and tear down a new product every week, using their expertise and studio and our media reach. A video of SI engineers tearing down an iPhone;one of the first groups to do so;attracted over 100,000 views from a YouTube posting. Exposing that to a TV audience is very exciting," he says.