Knowles Completes Sale of Consumer MEMS Microphone Business to Syntiant

Knowles Corporation has completed the sale of its Consumer MEMS Microphone business to Syntiant Corp. The deal marks a new chapter for Knowles, which will focus on its remaining businesses, including capacitors, RF filters, advanced medtech microphones, and balanced armature speakers. The transaction is a strategic move to streamline the company's operations and focus on its core strengths.

Knowles Corporation, a prominent global supplier of high-performance electronics, recently announced the completion of the sale of its Consumer MEMS Microphone (CMM) business to Syntiant Corp [1]. This strategic move marks a significant step for Knowles as it focuses on streamlining its operations and concentrating on its core strengths.

The divestiture of the CMM business, which generated $150 million in revenue in 2023 [2], is expected to bring Knowles $150 million in total consideration. The deal consists of $70 million in cash and $80 million in Syntiant preferred stock [2]. Syntiant has secured a customary debt financing commitment letter and intends to raise additional funds through an equity financing [2].

This transaction aligns with Knowles' ongoing transformation into an industrial technology company, primarily serving the aerospace, defense, medtech, industrial, and electrification markets [2]. The remaining Knowles businesses, including capacitors, RF filters, advanced medtech microphones, and balanced armature speakers, had a combined revenue of $560 million in 2023 [2].

The divestiture of the CMM business is expected to strengthen Knowles' financial position and enable it to focus on its core strengths. Knowles intends to use the net cash proceeds from the sale to fund its ongoing operations and growth initiatives [2].

References:

[1] Business Wire. (2024, December 30). Knowles Corporation Completes the Sale of Its Consumer MEMS Microphone Business to Syntiant. https://www.businesswire.com/news/home/20241230296257/en/Knowles-Corporation-Completes-the-Sale-of-Its-Consumer-MEMS-Microphone-Business-to-Syntiant/

[2] Investor.knowles.com. (2024, September 19). Knowles Signs a Definitive Agreement for the Sale of the Consumer MEMS Microphone Business. https://investor.knowles.com/news/news-details/2024/Knowles-Signs-a-Definitive-Agreement-for-the-Sale-of-the-Consumer-MEMS-Microphone-Business/default.aspx