News Article
Skyworks spreads its wings with acquisition of SiGe Semiconductor
With this move Skyworks immediately expands its market which will now broaden opportunities in the smart phones, tablets, gaming consoles, notebook PCs and home automation systems markets.
Skyworks Solutions, an innovator of high reliability analogue and mixed signal semiconductors enabling a broad range of end markets, has signed a definitive agreement to purchase SiGe Semiconductor.
SiGe Semiconductor is a global supplier of 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 finalise estimates of the transaction's financial impact, as well as the accounting for the transaction, upon deal close.
SiGe Semiconductor's diverse and comprehensive product portfolio provides the performance, range and reliability required by 802.11b/g/a/n, Bluetooth, WiMAX, GPS and ZigBee Systems. The company's innovative use of silicon-based semiconductor technologies simplifies the integration of RF signal processing for many of today's leading consumer, commercial and industrial electronics companies. Key SiGe customers include Cisco, Dell, Huawei, Hewlett-Packard, NetGear, Itron, Microsoft, Nintendo, Samsung and Sony.
Skyworks Conference Call
Skyworks will be hosting a conference call on May 18 at 8:00 a.m. Eastern to discuss the acquisition. The conference call may be accessed via the Internet from the investor relations section of Skyworks' Web site.
The live conference call may be accessed by calling 800-768-6544 (from within the U.S) or 785-830-7990 (from outside the U.S.) using confirmation code: 9593511.
Playback of the conference call will begin at 11:00 a.m. Eastern time on May 18, and end at 11:00 a.m. Eastern time on May 25. The replay will be available on Skyworks' Web site or by calling 888-203-1112 (from within the U.S) or 719-457-0820 (from outside the U.S.) using pass code: 9593511.
