Adesto To Acquire Echelon Corp. - Quick Facts

(RTTNews) - Adesto Technologies (IOTS) and Echelon Corp. (ELON) announced a definitive agreement under which Adesto will acquire Echelon for $8.50 per share. The acquisition price represents a total equity value of approximately $45 million, and a total enterprise value of about $30 million. Adesto expects to finance the transaction through a combination of existing cash and equity and/or debt.

Adesto expects the acquisition increases its revenue and accelerates margin expansion opportunities. The deal is expected to be accretive to EBITDA and non-GAAP earnings within the first 12 months.

"With the acquisition of Echelon, we are continuing to advance toward our vision of becoming a significant player in semiconductor and communication systems for IoT markets, in particular industrial IoT," said Narbeh Derhacobian, CEO of Adesto.

Separately, Adesto announced that it intends to offer and sell shares of its common stock in an underwritten public offering. All shares in the offering are to be issued and sold by Adesto. Adesto intends to use the net proceeds of the offering in part to finance its announced acquisition of Echelon Corp.