A privately held company founded in 1998 and based near London, Telegesis has established itself as a ZigBee expert with strong momentum in the smart energy market, providing ZigBee module solutions to many of the world’s top smart metering manufacturers.

This strategic acquisition accelerates Silicon Labs’ roadmap for ZigBee and Thread-ready modules and enhances the company’s ability to support customer needs with comprehensive mesh networking solutions ranging from wireless system-on-chip (SoC) devices to plug-and-play modules backed by best-in-class 802.15.4 software stacks and development tools.

“The addition of Telegesis’s successful module business strengthens Silicon Labs’ position as the market leader in mesh networking solutions for the Internet of Things,” said James Stansberry, senior vice president and general manager of Silicon Labs’ IoT products.

“The combination of Telegesis modules, Silicon Labs mesh networking SoCs, best-in-class 802.15.4 software stacks and easy-to-use wireless development tools provides customers with a seamless migration path from modules to SoCs and from ZigBee to Thread-based networks.”

“The Telegesis team is truly excited to become an integral part of Silicon Labs,” said Ollie Smith, director of business development at Telegesis.

“Together, our hardware and software engineering teams will drive innovation in wireless mesh networking while giving customers a flexible choice of module and SoC-based designs leveraging both ZigBee and Thread technology.”

Silicon Labs completed the acquisition of Telegesis on November 20, 2015, for a cash purchase price of approximately $20 million (USD). Telegesis is expected to contribute incremental revenue at an annual run-rate of approximately $8-$10 million for the remainder of Q4 2015 and also for fiscal 2016. Silicon Labs expects the acquisition to be slightly accretive on a non-GAAP basis, including the addition of approximately 20 Telegesis employees.