Microchip Technology, a US semiconductor company, signed a definitive agreement to acquire Hailo, an Israeli developer of edge AI processors and software.

The deal is expected to close toward the end of Microchip’s quarter ending September 30, subject to customary regulatory approvals and closing conditions.

Hailo makes edge AI accelerators, vision processors, and software that let devices such as smart cameras, robots, and industrial systems run AI workloads locally instead of relying on cloud processing.

Microchip said Hailo’s products would complement its existing embedded portfolio of microcontrollers, embedded processors, field-programmable gate arrays, connectivity, security, power, and analog products, extending an edge AI strategy it had already been building.

The companies did not disclose terms.

The price was only a fraction of Hailo’s earlier valuations after the startup came under liquidity pressure, including a US$12 million emergency loan, layoffs affecting about 50% of its employees, and a collapsed special purpose acquisition company merger plan.

Founded in 2017, Hailo raised about US$340 million and was valued at more than US$1 billion.

Microchip said the acquisition was not expected to have a material impact on its financial results.

🔗 Source: Calcalist