The Greek Microelectronics Startup Adveos Acquired for $7.5m by a Chinese Tech Corporation
After in May 2020, the Greek startup ecosystem witnessed the biggest acquisition in the deep-tech sector when the design and graphics Think Silicon was bought out by the US company, Applied Materials, for €20m, it has recently seen another big acquisition of a tech startup, this time by a Chinese corporation. Adveos, the Greek startup that designs integrated high-tech chips placed in various devices such as laptops and smartphones, is a fabless company that does not have a production line or a factory. Instead, the IC startup sells its designed microchips that are used in consumer electronics, communication networks, and medical equipment to the market through its R&D center. The company that acquired them, the Chinese Beken Corp., is a semiconductor manufacturer, headquartered in Shanghai, designs and manufactures products and circuits for wireless communication, IoT apps, and intelligent transport systems. Even though the deal was announced back in August 2020, it has been finalized in the last week of 2020 as it was subject to regulatory approval by both sides.
“At Adveos we found an excellent team that fits perfectly with our vision of becoming a leading wireless chipset company,” noted Pengfei Zhang, the president of Beken. According to Zhang through the acquisition, Beken intends to expand the Athens team and increase their presence in the coming years, while simultaneously increasing the competitiveness and profitability of Beken.
The traction of Adveos up to this point
Adveos has offices in both Greece and Armenia and works with some big international clients such as Intel and Cisco, as well as other companies from Israel, the Scandinavian countries, France, the US, and the UK. Even though the startup currently employs 35 people, because of the deal, it is expected that within the next couple of years, the number of employees will triple. Since its inception in 2015, the startup has been growing steadily on its own capital and investing a good amount in human resources. Before the takeover, Adveos had announced plans for the construction and promotion of its own chip and after the acquisition, it is expected that the process will be accelerated. However, once manufactured the chip of Adveos, as well as all the other services of the startup, will be provided exclusively to the parent corporation.
“We are happy to be part of a strong organization like Beken, and we look forward to working together to develop the next generation of wireless platforms,” highlighted George Dimitropoulos who is the CEO and co-founder of Adveos. According to him, within Beken, the Greek startup will design products that will help millions of people to improve their lives.
What is the significance of the takeover and what will follow next?
The deal represents the first company acquisition of Beken outside China and also the first acquisition of a Greek startup in this field of technology by a Chinese corporation. The acquisition of Adveos will boost the wireless capabilities of Beken and will accelerate its growth in a moment, which provides a lot of opportunities for both foreign and domestic markets. Moreover, having announced their plans to expand and employ more tech specialists, Adveos will offer opportunities for more Greek tech talent to use their potential in their home country, and the good news is that the R&D center of the startup will remain in Greece, while George Dimitropoulos will continue to be the CEO.
