Knowles Completes Consumer MEMS Microphone Business Sale to Syntiant

Knowles Corporation (NYSE: KN), a leading global supplier of high-performance electronics for demanding applications, has successfully completed the sale of its Consumer MEMS Microphone (CMM) business to Syntiant Corp. The transaction, valued at $150 million, consists of $70 million in cash and $80 million in Syntiant preferred stock. The sale supports Knowles' ongoing transformation into an industrial technology company, focusing on its Precision Devices (PD) and MedTech & Specialty Audio (MSA) segments.

The sale of the CMM business enables Knowles to concentrate on its core competencies in capacitors, radio frequency (RF) filtering products, balanced armature speakers, and advanced medtech microphones. By divesting the CMM business, Knowles can allocate more resources and investments to its core segments, potentially driving growth and innovation in these areas. For instance, the company's recent acquisition of Cornell Dubilier, a private manufacturer of capacitors, added thin film, electrolytic, and mica capacitor products to Knowles' portfolio, which could boost growth in the PD segment.

The cash proceeds from the sale will help Knowles improve its financial position by reducing debt and potentially repurchasing shares, which can boost shareholder value. The company expects to use the net cash proceeds from the sale of CMM to fund the paydown of debt and the repurchase of Company stock.



The acquisition of Knowles' CMM business by Syntiant Corp. enables the company to offer complete turnkey solutions, integrating sensors, processors, and software. This is because Knowles' CMM division is an industry-leading manufacturer and supplier of high-performance SiSonic™ micro-electro-mechanical systems (MEMS) microphones, which are essential for voice and audio applications in various market segments, including smartphones, smart speakers, wearables, autos, and household appliances. By acquiring these assets, Syntiant will be able to provide customers with a complete turnkey solution that integrates these microphones with its own edge AI processors and software, creating a comprehensive, end-to-end solution for edge AI deployments. This integration will allow Syntiant to offer customers a more seamless and efficient experience, as they will no longer need to source these components separately.

The acquisition of Knowles' CMM business aligns with Syntiant's long-term strategy to become a leading provider of AI-driven interfaces. By expanding into the MEMS market, Syntiant gains access to a multi-billion dollar market expected to reach $100 billion by 2027. This expansion allows Syntiant to offer a broader range of products and solutions to its customers. Additionally, the acquisition enables Syntiant to integrate sensors, processors, and software, providing a more comprehensive solution for AI-driven interfaces and making it a one-stop shop for customers. As AI continues to revolutionize various industries, the demand for AI-driven interfaces in edge devices is expected to grow significantly. By offering complete turnkey solutions, Syntiant can capitalize on this growth and establish itself as a leading provider of AI-driven interfaces.

In conclusion, the sale of Knowles' CMM business to Syntiant Corp. is a strategic move that enables Knowles to focus on its core competencies and improve its financial position. For Syntiant, the acquisition aligns with its long-term strategy to become a leading provider of AI-driven interfaces, offering complete turnkey solutions and tapping into the growing market for AI-driven interfaces.