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Fairchild Explores 3D Motion Tracking, Buys Xsens - Analyst Blog

Posted
5/15/2014 4:30:00 PM
By: Zacks.com
Referenced Stocks:ABB;FCS;MONT;SI

Fairchild Semiconductor International Inc. ( FCS ), a provider of high performance semiconductors, formally announced the acquisition of Xsens to explore the fast-growing 3D motion tracking market.

Per media reports, the strategic acquisition of Xsens and its sensor fusion technologies has cost Fairchild about $60 million.

Synergies

Presently, Fairchild delivers power and mobile semiconductor technologies to various end markets, including mobile, industrial, cloud and automotive industries. The integration of Xsens' capabilities to Fairchild's operations will facilitate the latter to venture into the lucrative 3D motion tracking market.

The deal will position Fairchild to develop state-of-the-art sensor solutions and serve traditional industrial and mobile markets, as well as emerging markets including smart interconnected devices (the Internet of Things) and cloud-based wearable sensor accessories.

The scope for adding value lies in the application skills and the algorithms deployed in hardware and software. Combining Xsens' sensor and software skills with its own MEMS (Micro-electromechanical systems) capability will optimize the entire motion tracking system for low power.

The Acquiree

Based in the Netherlands, Xsens is a dominant player in the 3D motion tracking market It develops sensor fusion technologies that allow the physical and digital world to interact seamlessly. The technology has numerous professional and consumer applications, such as motion analysis, 3D character animation, health and fitness and industrial control and stabilization.

Xsens, the maker of MEMS inertial sensors for motion tracking devices, caters to clients such as Siemens AG ( SI ), NBC Universal, ABB Ltd. ( ABB ), and Autodesk.

Being a part of Fairchild will expand its access to technology and resources, enabling it to strengthen its 3D motion tracking product portfolio and leverage Fairchild's remarkable experience in semiconductor design and manufacturing.

Looking Ahead    

For the past year, Fairchild has been focusing on technological transformation of its offerings, driven by innovation. The company aims to expand its footprint in the fast growing markets which began with game interfaces and smartphones and quickly found new applications in smart interconnected devices and wearable body motion tracking devices for sports, gaming and health.

The move significantly reinforces Fairchild's MEMS and sensor offerings and is in tune with the firm's corporate strategy.

Fairchild presently carries a Zacks Rank #4 (Sell). A better-ranked stock in the industry worth considering is Montage Technology Group Limited ( MONT ), sporting a Zacks Rank #1 (Strong Buy).


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