CHIPSENSORS, A BANK OF IRELAND KERNEL CAPITAL INVESTEE COMPANY, IS ACQUIRED BY U.S. BASED SILICON LABORATORIES INC
From left: N้stor F. Ho, General Counsel and Corporate Secretary, Silicon
Laboratories Inc; Tim Cummins, CEO, Chip Sensors Ltd and Niall Olden, Managing
Partner, Kernel Capital.
CORK, Ireland, 13 October 2010: Bank of Ireland Kernel Capital
Equity Fund confirms that it has sold its
40% share holding in ChipSensors as part of an all cash
trade sale of the firm to Texas based Silicon Laboratories
Inc. ChipSensors Limited, a developer of innovative silicon
sensor chips to detect temperature, humidity and gases is
based at the University of Limerick. It was established
in 2005 by Tim Cummins after securing an initial investment
of 100,000 by way of a loan note from the Bank of Ireland
Kernel Capital Equity Fund, an early stage equity fund supported
by Bank of Ireland, Enterprise Ireland and private investors.
Since 2005 a further eight separate investments by the Bank
of Ireland Kernel Capital Equity Fund in
ChipSensors followed, including that of April 2010 when
the Company announced a 2m investment from a syndicate
that included Enterprise Ireland and London based ETV Capital.
Total investment by the Bank of Ireland Kernel Capital Private
Equity Fund was 1.95m.
Commenting on the announcement, Niall Olden, Managing Partner
of Kernel Capital said: "This is an excellent trade
sale, the transaction demonstrates how early stage high
potential companies can be nurtured and supported while
simultaneously generating excellent returns for investors.
This sale follows a series of successful trade sales by
the Bank of Ireland Kernel Capital Fund, all of which have
attracted foreign direct investment into Ireland through
acquisition by global players of the Fund's portfolio companies."
Mark Downing, VP of Corporate Strategy and Business Development
for Silicon Laboratories, commented: "ChipSensors has
an excellent design team that have developed sensor products
that have a strong synergy with our existing products targeting
similar end market applications. Silicon Labs continues
to expand its global presence and we intend to take advantage
of the strong local talent."
Tim Cummins, CEO and Founder of ChipSensors added: "ChipSensors'
pioneering silicon sensor technology concepts were understood
and appreciated by Kernel Capital from our earliest contact.
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. We are delighted
with this acquisition by Silicon Labs, bringing our innovative
sensor technology to a team that has a reputation for the
highest calibre mixed signal engineering in the industry."
The 27m Bank of Ireland Kernel Capital Equity Fund,
Kernel Capital's first Fund, was established in 2002. This
Fund has made multiple investments in a portfolio of nine
companies. The trade sale of ChipSensors to NASDAQ quoted
Silicon Labs represents another successful outcome for Kernel
Capital. The sale of ChipSensors is the fourth significant
trade sale of the portfolio following the 2010 sale of Stokes
Bio to NASDAQ quoted Life Technologies, the 2009 sale of
Straatum Processware to NASDAQ quoted Lam Technologies and
the 2005 sale of Farran Technology to London Stock Exchange
quoted Smiths Technologies. In addition, Merrion Pharmaceuticals
of which Kernel Capital was an early investor has since
floated on the Irish Stock Exchange. All of the international
acquirers have established a strong presence in Ireland
and have become significant employers post their respective
acquisitions.
Kernel Capital and its associate Life Science investment firm Seroba Kernel have in excess of 190m under management in five separate Venture Capital funds, investing in ICT, Life Science and general seed and early stage investments. These funds are supported by Enterprise Ireland, Bank of Ireland, the University of Limerick Foundation and a range of other financial institutions. They have invested in Kernel Capital's portfolio of 36 companies which collectively employ in excess of 700 people, had a 2009 turnover of 72m and have been granted 138 scientific patents. Kernel Capital and Seroba Kernel are committed to dynamic, innovative, knowledge based companies and have led in excess of 96m in syndicated investment over the past 12 months. Kernel Capital believe that it is an exceptional time for investment and will close a number of further transactions before year end. The firm anticipates a significant level of activity in 2011.
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For further information please contact:
Orla Rimmington, Operations Director, Kernel Capital.
Tel: +353 21 4928974 / Fax: +353 21 4928977
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