Crocus’s portfolio of technology and products has been developed to serve high-growth applications in e-mobility, clean energy and automation, and is supported by more than 200 patents. The magnetic sensing market is expected to increase to over $5 billion by 2030, with TMR representing the fastest-growing segment and expected to approach $1 billion by 2030.
Analysts expect automotive and industrial applications to fuel TMR's estimated 30% CAGR, which significantly exceeds the growth of the overall magnetic sensing market.
"Allegro has invested in TMR technology for the past decade, providing our customers with innovative and high-performing solutions enabling them to design products with optimal performance. We are seeing broader application of TMR technology as the megatrends of electrification and automation accelerate. This highly complementary acquisition aligns perfectly with Allegro's growth initiatives and our focus on e-mobility, clean energy and automation," said Vineet Nargolwala, President and CEO of Allegro.
"In addition to accelerating our TMR roadmap and further strengthening our leadership in magnetic sensors, the acquisition will allow us to offer a broader and more differentiated product offering to benefit our customers.”
Commenting Zack Deiri, President and CEO of Crocus, said, "By combining Crocus's best-in-class advanced TMR technology with Allegro's long-standing partnerships with leading automotive and industrial OEMs and tier-1’s, we expect to accelerate the adoption of TMR in targeted automotive and industrial markets."
The planned acquisition of Crocus will be funded with a combination of cash on hand and a new term loan. Subject to customary regulatory approvals and closing conditions, the transaction is expected to close by the end of calendar year 2023.