VC-Backed Bust: Tessera Buying Siimpel for $15 Million

Tessera Technologies Inc. (Nasdaq: TSRA) has agreed to acquire Siimpel Inc., an Arcadia, Calif.-based maker of integrated optical microsystems. The deal is valued at $15 million in cash. Siimpel had raised over $75 million from firms like Motorola Ventures, NTT DOCOMO, DFJ, Global Catalyst Partners, LG Innotek, Portage Venture Partners, Scale Venture Partners, Sun America Ventures and Zone Venture Partners.

PRESS RELEASE

Tessera Technologies, Inc. (Nasdaq: TSRA) announced it has entered into a definitive agreement to acquire Siimpel Corporation, a leading developer and manufacturer of MEMS (Micro Electro Mechanical Systems) based camera solutions for mobile imaging applications. Under the terms of the agreement, Tessera will pay approximately $15 million in cash. This transaction is subject to various standard closing conditions. Tessera does not anticipate a revenue contribution in the second quarter of 2010 from this acquisition. The company expects to incur additional second quarter Non-GAAP operating expense of between $1.8 million and $1.9 million as a result of this acquisition, assuming the transaction closes within the next several business days.

“Siimpel’s MEMS-based auto focus and shutter solutions complement our EDOF technology and will enable us to expand our image enhancement portfolio to address camera modules with even higher megapixel resolutions, for which auto focus will be the solution of choice,” said Henry R. Nothhaft, chairman and chief executive officer, Tessera. “This acquisition will enable us to leverage the extensive customer relationships we have developed with the supply chain to offer a wider range of high-value IP-based imaging and optics solutions.

“Growing consumer demand for cell phones with video capabilities as well as digital still camera functionality is driving the need for smaller, lower-power, higher-performance camera modules. We believe that Siimpel’s innovative MEMS technology addresses these next-generation camera module requirements, while keeping costs low by utilizing the existing supply chain and materials,” added Nothhaft.

Founded in 2000, Siimpel has 42 employees and is headquartered in Arcadia, Calif. The company’s MEMS-based auto focus solutions are expected to drive new levels of power, size and performance of digital cameras for cell phones and other camera-enabled devices. The company has 65 patents and patent applications for its technology.

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