San Jose, Calif.—April 23, 2020—Parade Technologies Ltd. www.paradetech.com (Taipei Exchange: 4966 TWO), a leading video display and interface IC supplier, today announced it has entered into an Agreement and Plan of Merger to acquire Fresco Logic, Inc., a fabless semiconductor company with a focus on high speed data transport and I/O aggregation chip and technology, for an aggregate purchase price of US$37.5 million in cash.
“Fresco Logic team demonstrates the strong expertise and leadership in USB, and USB Type C technologies,” said Jack Zhao, CEO of Parade Technologies. “Parade has been leading high-speed interface technologies and products. The addition of USB Hub, USB port expansion and Power Delivery products and technologies, and its relevant intellectual property portfolio will speed up our roadmap development and execution in USB4 product line and beyond to provide cutting-edge high-speed products to our customers.”
USB4 is an important evolution of USB standard to meet high performance, low power, and interoperability requirements needed in environments with various systems and peripheral connected devices. The integration of the Fresco Logic technology will accelerate Parade Technologies’ roadmap for USB4 silicon, software, and solutions. The acquisition also includes USB3 host controllers and I/O signal aggregator ICs for multi-protocol low speed signals or USB2 over USB3.
“Data and video solutions are being combined into the same connector directly on the mobile systems.” said Jing-Fan Zhang, CEO of Fresco Logic. “Our team is excited to join Parade Technologies to help build smarter, more connected high-speed interface systems. Backed by two decades of advanced research in USB, PCIe, & other high-speed data interface standards, Fresco Logic has created highly differentiated, low power multiprotocol products”.
Parade intends to fund the transaction with $37.5 million cash on hand. The transaction, which is subject to customary closing conditions, is expected to close during the second quarter of fiscal 2020. Morgan Lewis & Bockius LLP served as the legal counsel to Parade. Stoel Rives LLP acted as legal counsel to Fresco Logic.
Press Conference –
Parade will hold its press conference call at Taipei Exchange on Thursday, April 23 beginning at 3:00 pm Taipei time, solely to discuss this acquisition transaction.
About Parade Technologies, Ltd.
Parade Technologies, Ltd. is a leading supplier of mixed-signal ICs for a variety of popular display and high-speed interface standards used in computers, consumer electronics and display panels. The fabless semiconductor company was founded in 2005 and publicly listed on Taipei Exchange (TPEx) in 2011 (stock code: 4966). Parade’s portfolio of IC products serves the growing demand for HDMI™, DisplayPort™, SATA, and USB ICs for display, storage and interface applications.
In addition to being a technology innovator, Parade is an active participant and leader in industry standards-setting organizations. Parade Technologies, Inc., a wholly owned US-based subsidiary of Parade Technologies, Ltd., is a member of VESA (Video Electronics Standard Association). Parade Technologies, Inc. has made key contributions to the development of VESA’s DisplayPort™ digital video interface standard.
Parade leverages its close relationships with market leading Tier-1 OEMs to develop ICs that provide unique system capabilities. Many of the company’s devices integrate proprietary technologies that offer superior system signal integrity, advanced system integration and enhanced power efficiency. As a result of the company’s “standards-plus” design philosophy, Parade ICs have been designed into products offered by nearly every leading computer and display vendor worldwide.
About Fresco Logic, Inc.
Headquartered in Portland Oregon, Fresco Logic was founded by a team of technical experts from Intel and Synopsys. Fresco Logic is a market leader in providing advanced I/O silicon solutions that deliver highly efficient connectivity such as F-One Aggregation, GoExtreme™ USB 3.1, USB Type-C, Power Delivery and USB Video for next-generation consumer electronics, mobile devices, IoT and industrial applications. Billions of Fresco Logic USB3.0 Port have been deployed to the market today.
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