Transactions Falanx is acquired by ARM Holdings (NASDAQ: ARMHY) Falanx is a developer of graphics processor IP cores and software for semiconductor (system-on-chip) vendors. The company's key differentiators include high performance, small die size, and low power 3D graphics for mobile and other applications, and its solution is of particular relevance to the mobile phone industry. In our assessment, industry consolidation was underway and we advised the company to enter into a structured process to determine the best fit and value for the shareholders. We implemented a process to position the company and communicate with the qualified set of potential acquirers which included global leaders in the graphics processor, mobile phone IC, system on chip, and handset OEM sectors. At the time, Falanx had about 21 employees, predominantly IC, software, and systems designers. While the company had earned several high-profile design wins, they did not yet have significant production revenue. The value in the company, in our assessment, included: (1) a strong technical team, (2) novel and proprietary semiconductor core IP, and (3) early compliance with the emerging OpenGL ES 2.0 standard that is anticipated to be important in their market. At the conclusion of our process, Falanx was acquired by ARM Holdings, a leading global supplier of processor and physical IP technology and the world market leader in mobile phone CPUs. Falanx has become a key component of ARM's position in the mobile graphics IP market and is anticipated to be broadly deployed over the next few years in 3D graphics and multimedia capable mobile phones. The sale resulted in greater than five times return on investment to its investors. Intelligent Capital, Inc. was Falanx's exclusive advisor on the sale of the company to ARM, Ltd.
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