Gyration, Inc. acquired by Thomson SA

Gyration was acquired by Thomson SA on July 19, 2004 for an undisclosed amount.  Gyration was able to find an ideal merger partner that would allow the company to rapidly accelerate the adoption of its technology in multiple high-volume markets. Management and the vast majority of employees will become full-time employees of Thomson, rapidly expanding their marketing efforts as an operating unit.

Founded in 1989, Gyration is a Silicon Valley-based company with 2003 revenues of $14 million that has developed a line of next-generation user-interface (UI) devices using proprietary technology based on gyroscopes. The technology is currently incorporated in a variety of hand-held UI devices, mainly for personal computers (PCs). The patent-protected “In Air” motion-sensing technology is based on a tiny gyroscope embedded within a hand-held device that can measure the angle and speed of deviation to move a cursor or other indicator between “Point A” and “Point B.” This allows users to select content or enable features on a device by simply pointing in the air.

The market for such devices is currently estimated at $200 million in the US alone. Demand is expected to grow with the convergence of PC, set-top boxes, game consoles and television.

Thomson will use Gyration’s gyroscope technology within its own business, primarily as remote controls for its set-top box and accessories activities. The group also intends to extend applications of Gyration’s technology by licensing it to existing customers as well as to industries such as interactive gaming, hand-held devices, and automotive-related products.

Strategically, the deal was a win-win for both parties and will allow Gyration to leverage Thomson’s global infrastructure and distribution channels to rapidly expand the use of Gyration’s technology in multiple markets.