NASDAQ-listed Silicon Labs To Buy Wellington Financial Fund III portfolio co. Ember Corp.

While Canadians were celebrating Victoria Day yesterday, NASDAQ-listed Silicon Laboratories (SLAB-Q) announced that it has agreed to acquire Ember Corp., a Boston-based short-range wireless technology company. The price was US$72 million in cash, subject to a working capital adjustment and an earn-out formula that could drive the price higher.

According to Forbes, “Silicon Labs is making a play on ‘the Internet of things’.”

SLAB said Ember should contribute $10 million to $12 million in revenue in the 2012 second half, and should be accretive on a non-GAAP basis in 2013.

Wellington Financial announced its first US$5 million credit facility for Ember in 2009, and then renewed it earlier this year. A great example of how ready we are to back our existing portfolio companies with our patient, non-amortizing debt capital. Some of Ember’s primary venture capital investors include Polaris Ventures, GrandBanks Capital, RRE Ventures, Vulcan Capital, DFJ ePlanet Ventures and New Atlantic Ventures.

Ember’s ZigBee networking systems – CMOS wireless semiconductors, ZigBee protocol software and tools – are extensively used for monitoring and control operations in the Connected Home including, Smart Energy, Security Monitoring and Automation (SMA), Home Automation, Smart Lighting and Communicating Appliances. These applications enable more comfort, convenience and security in the home for consumers while allowing them to work with utilities to better manage energy consumption.

Congrats to Bob, Jim and the entire Ember team.

MRM