26 May 2011

Skyworks to buy power management firm Advanced Analogic Technologies

Skyworks Solutions Inc of Woburn, MA, USA, which manufactures high-reliability analog and mixed-signal semiconductors, has signed a definitive agreement to purchase Advanced Analogic Technologies Inc (AATI, or AnalogicTech) of Santa Clara, CA.

AnalogicTech is an analog semiconductor firm focused on enabling energy-efficient devices for the application-specific power management needs of feature-rich consumer electronic devices (such as mobile handsets, digital cameras, tablets, notebooks, TV and LCD displays) as well as devices in a broad range of computing, industrial, medical and communications applications. The firm also licenses device, process, package, and application-related technologies. Assets include design centers in Santa Clara and Shanghai, as well as Asia-based operations and logistics.

The latest deal comes just nine days after Skyworks agreed to purchase SiGe Semiconductor Inc of Andover, MA (a fabless supplier of highly integrated silicon-based RF front-end solutions enabling wireless connectivity).

Skyworks says that the AnalogicTech acquisition expands its portfolio with highly complementary analog semiconductor products including battery chargers, DC/DC converters, voltage regulators and LED drivers. According to the market research firm Gartner, the analog power management market is expected to grow from $9.9bn in 2010 to $12.1bn in 2014.

“Skyworks’ acquisition of Advanced Analogic Technologies will enable us to further capitalize on our strong smart-phone, tablet, set-top box and infrastructure positions with an expanded and differentiated product portfolio while accelerating our entry into new vertical markets,” says president & CEO David J. Aldrich. “At a higher level, analog power management semiconductors represent a strategic growth market for Skyworks as our customers increasingly demand both ubiquitous wireless connectivity and power optimization across seemingly every kind of electronic platform. With Advanced Analogic Technologies, Skyworks will be well positioned to address these massive twin market opportunities leveraging our broad customer relationships, innovative product portfolios and increasing operational scale,” he adds.

“Together, we can better address our customers' demand for highly integrated power management solutions across a broader range of markets and applications,” says AnalogicTech’s president, CEO & chief technical officer Richard K. Williams.

Skyworks has agreed to buy AnalogicTech for a nominal price of $6.13 per share (a 52% premium on its 30-day trailing average), consisting of $3.68 per share in cash and .08725 of a share of Skyworks’ common stock for each outstanding share of AnalogicTech common stock.

The amount of stock is based on the average closing price of Skyworks’ common stock over the 30-trading days prior to 26 May. At that average price, the stock component of the price has a nominal value of $2.45. This value will be tested again at closing, based on the average closing price of Skyworks’ common stock during the five trading days prior to the closing. If the average pre-closing value is lower than $2.45 then the amount of cash per share will be increased by the difference, and if the average pre-closing value is higher than $2.45 then the amount of cash per share will be reduced by the difference, to maintain a calculated nominal value of $6.13 per AnalogicTech share in either case.

The transaction is subject to approval by AnalogicTech’s shareholders, and is also subject to other customary closing conditions (including the receipt of applicable 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 post-closing.

See related items:

Skyworks to buy SiGe Semiconductor for $210m

Tags: Skyworks

Visit: www.analogictech.com

Visit: www.skyworksinc.com