Limerick start-up ChipSensors acquired by US firm in €10m deal

A THREE-year-old Co Limerick start-up firm has been acquired by a US company in a €10 million deal.

ChipSensors, a University of Limerick campus company, has been acquired by Austin-based Silicon Laboratories. ChipSensors develops single-chip sensors and its products are used to detect temperature, humidity and gases.

Silicon Labs will retain ChipSensors’ Limerick office and all its full-time employees.

It also plans to add to staff to “build up the capability”.

According to Silicon Labs, ChipSensors’ technology complements its own technology products.

Mark Downing, vice president of corporate strategy and business development for Silicon Laboratories, said: “In addition to a strong alignment with Silicon Labs’ existing sensor-related R&D efforts, ChipSensors’ technology also offers synergy with our existing MCU and wireless products, targeting similar end market applications and therefore enabling more content per system and unique integration opportunities.”

ChipSensors was venture backed by Kernel Capital, Enterprise Ireland and ETV Capital.

The Bank of Ireland Kernel Capital Equity fund had a 40% stakeholding in ChipSensors.

Total investment by the fund in the company came to €1.85m.

Chief executive and founder of ChipSensors, Tim Cummins, who established the company after securing an initial investment of €100,000, said: “Joining forces with Silicon Labs provides us with an exceptional opportunity to both collaborate with a team that has a reputation for the highest calibre mixed-signal engineering and potentially grow the design team in Ireland to take advantage of the strong local technical talent.”

Mr Cummins said: “Kernel supported our product roadmap and growth plans throughout the past five years, always believing in the company’s future in the volume production of novel sensors.”

Managing partner of Kernel Capital Niall Olden said: “The transaction demonstrates how early stage high potential companies can be nurtured and supported while simultaneously generating excellent returns for investors.”