Valens Semiconductor [NYSE:VLN] is looking for new acquisition opportunities, Chief Financial Officer Guy Nathanzon told this news service.

“We are interested in accretive acquisitions that are synergistic with our business and have a clear path to profitability and the ability to generate short-and long-term shareholder value,” he said.

These acquisitions will help expand market share and drive financial performance, he said.

The company is mainly focused on the Pro AV (professional audiovisual), industrial and machine vision markets.

It is looking to expand its geographical footprint across its existing bases, as well as extend its technology position in high-performance connectivity solutions, and broaden its pipeline, he said.

The Pro AV market is particularly exciting, he said, as the company’s newest chipset, the VS6320, addresses the industry’s biggest pain points when it comes to high bandwidth.

“We have seen an incredible amount of original equipment manufacturer interest with the VS6320 being incorporated into hundreds of new products that are available now, with more products to launch over the coming quarters,” he said. “We see this chip as a game-changer in the market and in our ability to get a foothold in new verticals.”

Valens funds its M&A activities with cash on hand, as demonstrated by the June 2024 acquisition of Acroname, which increased the company’s exposure to the industrial segment of the AV market.

With a robust balance sheet, debt-free status, and around USD 133m in cash and cash equivalents as of 30 September, Valens is well-equipped to invest in innovation and pursue strategic acquisitions.

While smaller transactions will be funded with existing cash resources, larger deals may involve exploring additional financing options.

“At the present time, we are primarily focused on transactions that enhance our existing capabilities and market position and that we can acquire with our existing cash resources,” he said.

Valens leverages its business development team and industry relationships to identify acquisition targets, he said. Additionally, the company works closely with investment banking partners to explore opportunities.

Valens Semiconductor, founded in 2006 and headquartered in Israel, develops semiconductor products for high-speed connectivity in the audio-video and automotive industries.

In September 2021, Valens went public on the New York Stock Exchange.