ITASCA, Ill. – Knowles Corporation (NYSE: NYSE:), a provider of specialty electronic components with a market capitalization of $1.76 billion, has finalized the sale of its Consumer MEMS Microphones business to Syntiant Corp., an AI solutions company. This move marks the conclusion of Knowles’ strategic review of this division, initially announced on September 18, 2023. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 2.35, indicating strong liquidity.
Knowles CEO Jeffrey Niew expressed satisfaction with the transaction’s completion and gratitude towards the Consumer MEMS Microphone team for their dedication. He highlighted the sale as a key step in Knowles’ ongoing transformation into a focused industrial technology company, aiming to leverage its design and customization capabilities in high-value markets. The company’s transformation efforts appear to be yielding results, with InvestingPro analysis showing a solid gross profit margin of 38.48% and moderate debt levels with a debt-to-equity ratio of 0.3.
Jefferies LLC acted as the financial advisor, and Sidley Austin LLP provided legal counsel for Knowles during the deal. The sale’s terms were not disclosed in the press release.
Knowles, established in 1946 and headquartered in Itasca, Illinois, specializes in components such as capacitors, RF filters, and advanced microphones for critical applications in MedTech, Defense, and Industrial sectors. Syntiant Corp., based in Irvine, California and founded in 2017, specializes in edge AI hardware and software for various consumer and industrial products.
This strategic divestiture is based on a press release statement and reflects Knowles’ intent to focus on markets where it can drive value through its product design, process technology, and customer solutions.
In other recent news, Knowles Corporation reported a robust Q3 2024 performance, with revenues reaching $143 million, a 32% year-over-year increase. This growth was notably driven by strategic acquisitions and organic growth. The company is transitioning away from the Consumer MEMS Microphone business, with a sale anticipated to finalize by the end of Q4 2024.
The company projects Q4 revenues to be between $141 million and $151 million, with an EPS projection of $0.26 to $0.30. The Medtech & Specialty Audio segment saw a 10% revenue increase, while the Precision Device segment grew by 57%.
In other recent developments, Knowles Corporation has amended its by-laws, clarifying that special stockholder meetings can now be called by either the Chairperson of the Board or a majority of the Board. This amendment aims to streamline the process for convening such meetings.
Furthermore, the company is actively assessing merger and acquisition opportunities that align with strategic goals. It is planning an Investor Forum for Q1 2025 to outline future growth strategies. Despite some inconsistencies in bookings through distribution partners in the industrial sector, the company expects a recovery by late Q1 or Q2 2025.
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