Allegro MicroSystems to acquire Crocus Technology for $420M in cash

Allegro MicroSystems announced that it has signed a definitive agreement to acquire Crocus Technology for $420M in cash. Crocus is a privately held company and a leader in advanced Tunnel Magnetoresistance sensor technology. This acquisition brings unique technology and products well suited to serve high-growth applications in e-Mobility, Clean Energy and Automation, supported by more than 200 patents. The magnetic sensing market is expected to increase to over $5B by 2030, with TMR representing the fastest growing segment and expected to approach $1B in addressable market by 2030. Automotive and Industrial applications are expected to fuel TMR’s estimated 30% CAGR, which significantly exceeds the growth of the overall magnetic sensing market. The planned acquisition of Crocus will be funded with a combination of cash on hand and a new debt issuance. The transaction has been approved by the board of directors of both companies. Subject to customary regulatory approvals and closing conditions, the transaction is expected to close by the end of calendar year 2023. Approval by Allegro’s stockholders is not required in connection with the proposed transaction.