Combination to Drive New Wireless Frontiers and Dramatic Cost Savings in Home and Building Automation, Home HVAC, Medical Devices, Entertainment, Automotive Controls and Other Markets
San Diego, California and Oslo, Norway, January 24th, 2005 - Chipcon AS, the leading provider of low power, low data rate RF ICs and Figure 8 Wireless, the leading provider of ZigBee ready software and firmware announced today that the parent company of Chipcon AS, the Chipcon Group ASA has acquired Figure 8 Wireless Inc, in an all stock transaction. The merger between the companies will provide a comprehensive end-to-end ZigBee platform and will provide the combined entity the ability to ensure customers receive the full cost and functionality benefits promised by the ZigBee Alliance.
The Chipcon AS and Figure 8 Wireless merger creates the world's first true global ‘one-stop' ZigBee™ solutions provider to deliver new device networking solutions based on the ZigBee standard, a recently ratified wireless device networking protocol that is creating a sea change in the way everyday devices communicate with one another. ZigBee solutions deliver reliable, cost-effective, low-power wireless monitoring and control applications based on an open global standard, enabling the broad-based deployment of reliable wireless networks. "Over the course of our partnership in delivering ZigBee ready solutions for our RF transceivers, we developed a close working relationship with the Figure 8 team," commented Geir Førre, President and CEO of Chipcon AS.
"Merging our two companies' activities will result in a tremendous enhancement in our software capabilities and will provide the resources to execute on our product strategy and ensure the success of the ZigBee standard and the company." The combination of the two companies' technologies creates a pure play in a space that is a new frontier in home and building automation, HVAC, medical devices, home entertainment, logistics, automotive controls, and other key markets where wired networks are being replaced by sub-$5 low-power wireless chip sets.
The potential impact is major category upheavals in industries such as the $10 billion building automation market dominated by players like Honeywell, Johnson Controls, Siemens, Invensys, and others that are set to benefit from significant reductions in installation costs that today make up as much as 50% of the installed cost of such systems. In addition, the low cost of the chip sets, coupled with wireless media will drive nascent markets like home automation and appliances to reach the potentials analysts have been predicting for a decade or more.The combined company offers customers a full range of ZigBee ready radios, software, development tools, and reference designs for end-to-end ZigBee solutions.
In addition, the software capabilities of Figure 8 Wireless significantly enhance Chipcon's current and future proprietary RF and standards-based solutions.The comprehensive solution provided by Figure 8 Wireless and Chipcon enables device manufacturers to create a number of useful applications for end-users. For instance, a building comfort control system installed with a wired control network solution today can be installed at a small fraction of the cost, increasing ROI for the building owner. Auto makers can replace controls for cabin comfort, door locks, lights and windows with wireless connections, cutting vehicle assembly costs and dramatically increasing reliability.
Homeowners with ZigBee based climate control systems, security systems or pool and spa controllers, no longer need to run wires through the house or yard to install the devices. They can access these devices through a gateway, allowing them to control their homes remotely or provide remote access to service providers such as power utilities, security monitoring companies or appliance repair organizations. "The merger of Figure 8 and Chipcon is great news for customers. The combination creates the synergy necessary to drive our platform interoperable solution for ZigBee device networking into the marketplace, and cements our dominant position as the clear leader in ZigBee ready software and firmware well into the future," added Joe Markee, President and CEO of Figure 8 Wireless."
Chipcon and Figure 8 offer a complete, highly integrated and competitive ‘one-stop' solution in the ZigBee wireless market," commented Glen Allmendinger, President of Harbor Research, Inc. "The merger delivers the powerful combination of wireless engineering and mesh networking expertise needed to achieve rapid deployment of ZigBee OEM products." Figure 8 Wireless has become a wholly owned subsidiary of Chipcon Group ASA and will continue to focus on Zigbee solutions and support all current customers going forward.
Chipcon and Figure 8 Wireless will have a common global presence for its one-stop Zigbee solution with direct sales and support operations in Europe, North America, and Asia.Joe Markee will continue his role as President of Figure 8 Wireless, and Don Sturek will become CTO, Software. In a separate move, Barry Rudolph, Figure 8 Wireless' CFO and Vice President of Business Development, will become CFO of Chipcon Group ASA and will be located in Oslo, Norway.
About Chipcon AS
Chipcon is a leading provider of proprietary and standards based CMOS RF-ICs for wireless connectivity. Chipcon's RF-ICs provide low-cost, low-power and high-performance RF solutions for a large number of wireless applications. Chipcon's single-chip high-performance RF transceivers and transmitters target low-power wireless applications in the 300 to 1000 MHz and 2.4 GHz frequency bands and are distributed worldwide.
For more information, visit Chipcon's Web site at www.chipcon.com , e-mail at [email protected] or call the company directly at (+47) 22 95 85 44.
About Figure 8 Wireless, Inc. Figure 8 Wireless is a venture backed start-up company leading the way in wireless device connectivity and networking based on the Zigbee/802.15.4 standards. Figure 8's Z-Stack and Z-Tools embedded software and development tools are in the hands of OEM device manufacturers on four continents.
Investors include Avalon Ventures, Cardinal Ventures and The Biterbi Group. For more information, visit Figure 8's Web site at www.f8w.com , e-mail at [email protected] or call the company directly at (858) 552-8500 x9.