Silvaco to acquire Mixel for mixed-signal connectivity IP expansion

Published 29/07/2025, 21:36
Silvaco to acquire Mixel for mixed-signal connectivity IP expansion

SANTA CLARA, Calif. - Silvaco Group, Inc. (NASDAQ:SVCO), a provider of semiconductor design software and solutions, announced Tuesday it has entered into a definitive agreement to acquire Mixel Group, Inc., a supplier of low-power connectivity silicon IP. The company, which maintains impressive gross profit margins of 77%, has shown strong operational efficiency despite challenging market conditions. According to InvestingPro analysis, Silvaco currently holds more cash than debt on its balance sheet, positioning it well for strategic acquisitions.

The acquisition, which combines cash and stock, is expected to close on or before August 1, 2025, subject to customary closing conditions. Financial terms were not disclosed in the announcement. The deal comes as Silvaco’s stock trades at $4.52, down significantly from its 52-week high of $18.54. InvestingPro research indicates the stock may be undervalued at current levels, with additional insights available in the comprehensive Pro Research Report covering 1,400+ US equities.

The deal will expand Silvaco’s semiconductor intellectual property (IP) offerings into high-growth markets including mobile, automotive, virtual reality, augmented reality, Internet of Things, and robotics, according to the company. With a current ratio of 2.14, Silvaco maintains strong liquidity to support its expansion plans, though InvestingPro data shows the company faces near-term profitability challenges, with analysts not anticipating positive earnings this year.

Mixel specializes in high-performance serializer/deserializer (SerDes) and physical layer (PHY) solutions, with particular focus on MIPI Alliance applications. The company has engineering teams across the U.S., Egypt, and Vietnam.

"Silvaco’s IP capability, combined with Mixel’s PHY portfolio, including ISO 26262-compliant IPs, marks a significant step forward in providing compelling high-quality IP solutions for our customers," said Babak Taheri, CEO of Silvaco.

Ashraf Takla, CEO of Mixel, has agreed to join Silvaco to facilitate the transition. "By combining the complementary strengths of our teams, we are well-positioned to drive more growth in low-power, high-performance connectivity solutions," Takla stated.

B. Riley Securities, Inc. served as exclusive financial advisor to Silvaco in the transaction, while Connected Vision Advisors acted as financial advisor to Mixel. Investors should note that Silvaco is scheduled to report its next earnings on August 6, 2025, which may provide additional clarity on the acquisition’s impact on the company’s financial outlook.

The information in this article is based on a company press release.

In other recent news, Silvaco Group Inc. reported its financial results for the first quarter of 2025, which fell short of expectations. The company recorded an earnings per share of -$0.67, significantly missing the projected $0.07. Revenue for the quarter was reported at $14.1 million, marking an 11% decrease compared to the same period last year. These results have raised concerns among investors regarding the company’s financial performance. Additionally, Silvaco announced changes in its leadership team, appointing Andrew Wright as Senior Vice President and General Manager of the Semiconductor IP Business Unit, Jasvinder Singh as Senior Vice President and General Manager of the EDA Business Unit, and John Berg as Vice President of Business Development. These appointments aim to strengthen the company’s strategic direction and business development efforts. The recent developments indicate a period of transition for Silvaco as it navigates financial challenges and leadership changes.

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