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Infineon to acquire Taiwanese chipmaker







Infineon to acquire Taiwanese chipmaker

Infineon to acquire Taiwanese chipmaker 01/28/2004 07:18 AM

CNET Asia Jan 28 2004 11:35AM GMT




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Infineon to acquire Taiwanese chipmaker

Grok Headline matches for Infineon to acquire Taiwanese chipmaker

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While the Taiwanese router industry
declined in the first quarter of 2004,
Taiwanese router shipments are
anticipated to grow by 30.9%
year-on-year in the second quarter of
2004


While the Taiwanese router industry
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07/10/2004 03:15 AM
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Chipmaker IDT to buy rival ICS for $1.7
billion


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06/17/2005 03:46 PM

Semiconductor maker Integrated Device Technology (IDT) has reached an agreement to take over rival Integrated Circuit Systems  (ICS) in a cash-and-stock deal valued at around $1.7 billion.

"This is merger of two successful companies," IDT Chief Executive Officer Greg Lang said during a conference call with analysts. "We believe this is a complementary fit bringing scope and scale to both companies."

Santa Clara, California-based IDT generated net income of $13 million last year on $391 million in sales of its semiconductor devices for networking equipment. ICS, headquartered in Norristown, Pennsylvania, had net income of $78.5 million on sales of $272.1 million in its last fiscal year.

Lang, who will remain CEO of the combined company, said the two vendors have some competitive overlap in the communication and PC component market, but also have diverse product portfolios in other areas, like the digital TV and military device markets. He expects the acquisition to extend IDT's product line while saving the enlarged company up to $50 million a year, within the next four years, by reducing redundant spending.

ICS CEO Hock Tan will become chairman of the combined company's nine-member board, to which IDT will designate five directors and ICS will appoint four.

The deal calls for ICS shareholders to receive 1.3 shares of IDT stock and $7.25 in cash per ICS share, a combined value of around $23.54, based on Wednesday's closing price of IDT shares (ticker symbol: IDTI) on the Nasdaq exchange. In Thursday trading, IDT shares dropped 8 percent to close at $11.51, while ICS (ICST) shares rose 10 percent, to $21.77.

Pending shareholder and regulatory approvals, the companies expect the deal to close toward the end of 2005.

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    Grok Description matches for Infineon to acquire Taiwanese chipmaker
    GrokA matches for Infineon to acquire Taiwanese chipmaker

    Infineon to acquire Taiwanese chipmaker

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