With the advent of Internet of Things (IoT), there is wide application and necessity for different kinds of data monitoring, be it in medical field, industrial field or research field. Hence there is a lot of data to be handled which is heterogeneous in nature. Combining data acquisition and data processing into a single system is a more efficient way of handling data. Spectrum estimation is one key method of processing. The novel aspect of the design described here is to implement a multichannel data acquisition system with embedded spectrum estimation at a reduced size, cost and power consumption. The method of implementing the proposed design is via Smart Fusion system on-chip device which combines circuits in analog and digital domains and allows the integration of a microcontroller and field programmable gate array (FPGA) fabric in a single chip.