OSI Acquires Silicon Microstructures

In its fourth acquisition in the 1998, optoelectronics specialist OSI Systems Inc. has purchased Silicon Microstructures Inc. (SMI) from Exar Corp. Silicon Microstructures specializes in the development of pressure and acceleration sensors based on micro-electro-mechanical system (MEMS) technology.

According to the terms of the deal, OSI will pay Exar $6.5 million in cash, with $2.6 million of the total to be paid at the closing of the transaction and $3.9 million at an undisclosed future date, based upon future sales. After the acquisition, the company will be a wholly-owned subsidiary of OSI, headed by current SMI president Jim Knutti.

OSI already maintains a presence in the sensor market with its UDT Sensors division. "SMI and UDT Sensors plan to follow similar strategies in higher-level packaging and system-level product development," says Knutti.

"Currently, we base many of our products on technology that interfaces light with electronics on a silicon platform," says OSI chairman and CEO Deepak Chopra. "SMI's products provide a silicon-based bridge between pressure and electronic signal processing. The parallels in manufacturing processes are significant enough that all of SMI's currently outsourced manufacturing will be rapidly integrated into our facilities with little added expense.

Exar produces analog and mixed-signal integrated circuits for video, imaging, and communications markets.