The investment will fund new product development from conception to launch, as well as the growth of operations in support of the company's expanding global customer base.
TD Capital, Prism Venture Partners, VenGrowth Equity Partners and 3i Technology Partners led the round. They were joined by previous investors including Hunt Ventures, RWI Group, GrowthWorks, and Vista Ventures.
The company considered bringing in new outside investors, but CEO and chairman Jim Derbyshire told OttawaBusinessJournal.com the insiders were anxious to lead the round.
SiGe has racked up impressive revenue growth in recent years, from $3.6 million in 2003 to $31.8 million in 2005. Revenues for the first six months of 2006 were US$23.0 million, as compared to US $11.9 million for the same period in 2005.
Bill Seifert, general partner of Prism, and Sean Brownlee, a director of 3i Technology Partners, have joined the SiGe board of directors.
SiGe makes chips used in a wide range of electronics products including GPS receivers, cellular handsets, Wi-Fi devices and WiMAX broadband equipment.
The company has built its success on selling to Chinese manufacturers who assemble products on behalf of major electronics companies.
SiGe currently has about 85 employees. It has shipped more than 100 million integrated circuits to customers and partners.
"SiGe Semiconductor has performed extraordinarily, demonstrating the vision of its management team, as well as its ability to identify and address high-growth market opportunities," Pat DiPietro, managing general partner ofVenGrowth Equity Partners, said in a statement. "They have established a track record of delivering leading-edge products, which are designed into a diverse mix of the leading edge consumer electronics products available today. VenGrowth is happy to show our continued support through this latest investment."
Mr. Derbyshire says SiGe does not expect to raise further capital, and says the company will choose the "optimum route" depending on market conditions. It has often been promoted as a candidate for an initial public offering, but Mr. Derbyshire says the market is not favourable at the moment.
The expansion financing also marks the beginning of a new stage for the company, in which SiGe plans to raise its profile and become better known.
