SiGe Semiconductor Sold
Skyworks to Acquire Mobile Data Connectivity Innovator SiGe Semiconductor
Skyworks Solutions signed a definitive agreement to purchase SiGe Semiconductor, Inc., a supplier of radio frequency (RF) front-end solutions that are facilitating wireless multimedia across a wide range of applications. The acquisition of SiGe, a fabless semiconductor provider, complements Skyworks' leadership in wide area front-end solutions by adding SiGe's innovative short range, silicon-based products. As a result, Skyworks will be able to offer customers a comprehensive wireless networking product portfolio, supporting all key operating frequencies with architectural flexibility to address a variety of high growth applications. Specifically, via this transaction, Skyworks immediately expands its addressable content opportunity within several strategic product areas including smart phones, tablets, gaming consoles, notebook PCs and home automation systems.
"Skyworks' acquisition of SiGe Semiconductor underscores our commitment to capitalize on ubiquitous wireless connectivity," said David J. Aldrich, president and chief executive officer of Skyworks. "To that end, this acquisition is highly complementary in terms of our addressed markets, sales channels, process technologies, design methodologies and baseband partnerships. At the same time, the SiGe business presents significant operational and cost synergies yielding immediate earnings accretion and long-term shareholder value creation."
"Skyworks clearly represents the best strategic and cultural fit for SiGe Semiconductor," said Sohail Khan, president and chief executive officer of SiGe Semiconductor. "Both companies have a long history of front-end innovation and a shared vision of the future of band-intensive wireless networking. Together, we can develop and deliver products of unprecedented integration and improve our customers' performance in the increasingly connected wireless world."
Skyworks will pay $210 million in cash, plus an additional $65 million if certain performance targets are met over the next 12 months. The transaction has been approved by Skyworks' and SiGe's boards of directors and is anticipated to close in June, subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals. Excluding any non-recurring acquisition related charges and amortization of acquired intangibles, Skyworks expects the acquisition to be immediately accretive to non-GAAP earnings and will finalize estimates of the transaction's financial impact, as well as the accounting for the transaction, upon deal close.