Startups merge to form high-performance analog chip company

Venture capital firms including Celtic House Ventures Partners, EdgeStone Capital Partners and Ventures West have also agreed to invest in Spectra7, a collaboration that will result in a capital investment, to date, of more than $80 million, comprising of patents and development centers in four countries.

The two startups have claimed that Spectra7 aims to address the demand for more bandwidth and lower costs in mobile and internet infrastructure equipment. The new-formed company is set to provide new system level analog components that will deliver unprecedented bandwidth over fiber and copper links, as well as to address the wireless bandwidth bottlenecks in mobile internet.

CEO of RedMere Tony Stelliga believes that the establishment of Spectra 7 aims to meet the needs created by the growing smartphone, tablet and wireless infrastructure, The new venture will look to take advantage of the unique combination of RedMere analog products, Fresco wireless technologies as well as a new capital structure. Spectra 7 also hopes to address concerns regarding network congestion.

Under the terms of the agreement, Chrysalis Capital VIII Corp., a subsidiary of venture firm Chrysalis Capital Group, will acquire all of the issued and outstanding shares of Fresco Microchip and RedMere, according to the statement. At the closing of the transaction, Chrysalis VIII will be the "resulting issuer," with each of Fresco and RedMere becoming a wholly-owned subsidiary of Chrysalis VIII. The company stated that the transaction is being structured to accommodate efficiencies for various legal structures, tax and accounting treatments and securities regulations.