Silicon Labs has agreed with Redpine Signals to acquire the company’s Wi-Fi and Bluetooth business, development centre in Hyderabad, India, and patent portfolio for $308m.

The technology will accelerate Silicon Labs’ roadmap for Wi-Fi 6 silicon and software, the company says. The acquisition also includes Bluetooth classic IP (including extended data rate) for audio applications including wearables, hearables, voice assistants and smart speakers.

The acquisition includes an at-scale design centre with approximately 200 employees in Hyderabad, India. Silicon Labs says Redpine’s multidisciplinary team will help it scale R&D faster and more efficiently.

Silicon Labs expects the transaction to add approximately $20 million in incremental revenue on an annualised basis. It will add approximately $15 million of non-GAAP operating expenses on an annualised basis.

The boards of directors of both companies and the stockholders of Redpine Signals have approved the transaction, which is expected to close in the second quarter of 2020 subject to customary closing conditions. J.P. Morgan Securities LLC served as exclusive financial advisor to Redpine Signals.

“The acquisition of Redpine Signals’ ultra-low-power Wi-Fi and Bluetooth products and extensive intellectual property portfolio will expand our leadership in IoT wireless technology,” said Tyson Tuttle, CEO of Silicon Labs.

Venkat Mattela, founder and CEO of Redpine Signals says “Backed by two decades of advanced research in OFDM and MIMO systems, Redpine has created highly-differentiated, low-power multiprotocol SoCs. Going forward, low-power Wi-Fi 6 is a key wireless technology for connectivity in IoT devices.”