InvenSense buying motion-processing/positioning tech firms


InvenSense (INVN) is buying Movea, a French provider of algorithms and software for processing/analyzing motion and audio sensor data, and Trusted Positioning (TPI), a developer of software that improves location tracking by combining data from motion sensors and GPS/Wi-Fi networks. The company is paying a total of $81M ($75M in cash).

InvenSense declares pairing its motion sensors with Movea and TPI's technology will allow it to offer "intelligent" sensor SoCs supporting always-on location and activity tracking for mobile apps/services.

Movea has an IP portfolio featuring 100+ patent families, and calls itself "amongst the leading patent holders for motion sensor based functions." It offers motion-processing/data fusion libraries aimed at mobile devices, sports wearables, and living room gear. TPI, meanwhile, argues its software allows for positioning to work in areas where wireless signals are blocked.

Two weeks ago, voice processor vendor Audience (ADNC) announced it's buying Movea rival Sensor Platforms. The deals have implications for QuickLogic (QUIK), whose sensor hubs have relied on Sensor Platforms' algorithms and have some feature overlap with InvenSense's motion sensors.

SA authors have gone back and forth regarding the competitive threat posed by InvenSense to QuickLogic, with bulls having argued InvenSense is only a threat on the low-end. The Movea/TPI deals arguably strengthen InvenSense's challenge.

Last fall, InvenSense bought Analog Devices' microphone unit for $100M+.

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Comments (6)
  • Philip Marlowe
    , contributor
    Comments (1581) | Send Message
     
    So that explains why INVN price climbed 6% on a very bad day for the nasdaq and an awful day for small caps. I guess it must have been a very good deal because the investment bankers got busy buying the stock before the deal was announced.

     

    It does seem like a good deal. The ability to provide fine grained location and directions is the next holy grail for cell phone manufacturers. Driving directions are fine, but everyone knows the best time to serve an ad is when someone is walking around a mall or a street and decides they need to buy something. And the usual driving direction software is not good enough to guide people on foot in confined spaces. Most smartphone owners in the world are on foot (or use public transport). Even if you are driving, when you shop you usually have to park somewhere distant from the place you want to shop, so you may still need walking directions. So everyone needs walking directions now and then and, most importantly, these directions tend come right before the time of purchase, i.e., at the most ideal time to serve an ad.

     

    So you will see good things for INVN if they are able to lock this down. If this opportunity is even 1/10 as big as people in the industry say it will be, there will be a lot of money for INVN in it.

     

    However, I really hope that they do not issue any more convertible debt. I would be really pissed at management if they keep doing this.
    7 Jul 2014, 06:33 PM Reply Like
  • Esekla
    , contributor
    Comments (4655) | Send Message
     
    Another disturbing point is that these deals were announced at 4:52pm EST. So while the deal probably is the cause for today's price appreciation, it shouldn't be. Leaked info is more common with some companies than others, and its not a particularly desirable trait for the average investor.

     

    I'll be discussing the actual financial impact for INVN shareholders in the comments of my most recent article, linked above.
    8 Jul 2014, 03:57 AM Reply Like
  • Jaun72
    , contributor
    Comments (19) | Send Message
     
    Picked up a chunk of Invensense not too long ago. Bought on the guess that a major player would be incorporating their chip into its latest product launch. Am quite please with direction to date.

     

    So the question is, does the Movea purchase lend to Invensense a finely enough grained experience to allow for its technology to supplant an iBeacon type installation. Is the Movea portfolio when melded to INVN's hardware that much a game changer? If so, this could get interesting.
    7 Jul 2014, 09:41 PM Reply Like
  • Esekla
    , contributor
    Comments (4655) | Send Message
     
    I appreciate the link from the editors, but actually the most comprehensive comparison of InvenSense and QuikLogic products is in the comments of my second most recent INVN article. The comments in the most recent article, linked above, do reference the specific spot, though.

     

    Also, I'll be doing to some quick analysis on the financial impact of these deals to InvenSense, in the comments of the most recent article.
    8 Jul 2014, 03:50 AM Reply Like
  • Joseph Dedvukaj
    , contributor
    Comments (551) | Send Message
     
    If you look at InvenSense's Audience MQ100, it consumes 18x more power than the Quicklogic (QUIK) ArticLink 3 S1. Also, you will find QUIK has the only in-system programmable and reprogrammable fabric on the market today. I really don't see any threat to QUIK. INVN is competing more head on with STM - a highly underestimated company and the largest MEMS supplier in the world. All the other really big players are captive - HP (inkjet), TI (DLP), etc.
    8 Jul 2014, 11:25 AM Reply Like
  • Esekla
    , contributor
    Comments (4655) | Send Message
     
    You wrote the exact same post in my article, so I'll just respond there and check out of this thread.
    8 Jul 2014, 11:59 AM Reply Like
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