Less than a year after obtaining a second loan from Runway, eSilicon was acquired by Inphi and Synopsys in January 2020.Start A Project
eSilicon, a semiconductor value chain provider and pioneer of the fabless ASIC model sought growth capital for its business serving tier-one customers in need of high-performance, custom semiconductors for the artificial intelligence, high-bandwidth networking, high-performance computing and 5G infrastructure markets.
When eSilicon’s bank couldn't provide the capital the company needed to continue its growth trajectory and explore M&A options, eSilicon approached Runway for additional funding in July 2017. The Runway team conducted in-depth due diligence to understand the industry and eSilicon’s business model, culminating in a term loan satisfying both parties. Throughout the course of the loan, eSilicon grew significantly and sought additional growth capital to continue its momentum. At the same time, the management team was exploring options to sell the business and wanted to avoid further dilution so close to the sale. Runway provided a second term loan to eSilicon, allowing its stakeholders to maintain their ownership percentages, while also providing the company with the capital needed to continue its growth and conduct a thorough M&A process. In November 2019, eSilicon signed a definitive agreement to be acquired by Inphi Corporation. Concurrently, Synopsys, Inc. announced the signing of a definitive agreement to acquire eSilicon’s embedded memory and interface IP assets. In early 2020, Inphi paid approximately $216 million for eSilicon in both cash and assumption of debt, while the price that Synopsys paid for the memory assets was not disclosed. By using debt instead of equity financing, eSilicon avoided unnecessary dilution to management and shareholders.
“Runway was a diligent and collaborative partner for eSilicon. On two separate occasions, when our business needed growth capital to continue momentum and explore M&A options, Runway was able to help while other traditional bank lenders were not. Using venture debt allowed our stakeholders to maintain ownership percentages and avoid further dilution – which was critical so close to the sale of the business. I would highly recommend Runway to other entrepreneurs seeking late stage growth capital.”
Jack Harding, President & CEO, eSilicon
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