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Allegro Microsystems completes the acquisition of Crocus Technology

    Allegro MicroSystems has announced the completion of its acquisition of Crocus Technology, a developer of magnetic sensors specialized in tunnel magneto-resistance (TMR) technology. TMR is the property of a device to change its electrical resistance value under the effect of an external magnetic field, enabling improved detection of magnetic fields in a variety of applications as magnetic sensing is making its transition from electronics to spintronics. This purchase from the thirty-year-old US company, a developer and manufacturer of integrated circuits specializing in sensing solutions and power semiconductors, was concluded for $420 million. The transaction was financed by a combination of cash and a new seven-year senior secured term loan of $250 million.

    Crocus Technology is a spinoff of the Spintec laboratory in Grenoble. It was founded in 2006 to establish itself in the highly competitive MRAM market, which is expected to grow at a compound annual growth rate of 18.58% between 2023 and 2032 (source: iCrowdNewswire). Accordingly, it has developed a cutting-edge TMR technology, which is the core principle of read and write operations of MRAM cells. Crocus Technology then decided a change of business plan and chose to valorize its expertise in TMR by addressing the market of magnetic-field sensors. Crocus Technology rapidly emerged as an innovative player in the field.

    The main feature of Crocus is its very sensitive TMR technology called XtremeSense. In comparison to other magnetic technologies based on giant magneto-resistance or Hall effect, Xtremesense TMR allows low power consumption and easy integration due to its small size. Along with its low noise and stable performance over temperature, Xtremesense can be used in a wide variety of applications, magnetic sensing making a beneficial transition from electronics to spintronics.

    With over 200 patents granted and 450 patents filled since its creation, along with eVaredis, Hprobe and Antaïos, Crocus has consolidated Spintec’s very strong position as a major hotbed of start-up companies in the world of spintronics.

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