Analog Devices Inc. announced that it has entered into a definitive agreement to acquire privately-held Integrant Technologies Inc. (Integrant), Seoul, South Korea. An innovator in the field of high performance analog circuits designed for reconfigurable radio frequency (RF) signal processing, Integrant is a supplier of low power radio tuners that allow mobile communications, computer and consumer devices to receive digital television (TV) and digital radio broadcasts.
Founded in 2000, Integrant has an established revenue base and gross margins consistent with highly-differentiated, low power RF technology. The acquisition is expected to increase ADI's revenue by approximately 1 percent of sales in each of the next few quarters.
The Integrant organization will team with ADI's high speed signal processing organization, whose innovations in RF design focus on receivers and transceivers for broadband wireless, satellite radio and terrestrial and cable TV. According to John Hussey, ADI vice president for high speed signal processing, "As we've seen in applications from cellular telephony to digital TVs, customers value RF solution providers that support multiple standards and frequencies with compatible families of products. Integrant's technology provides that same value to the rapidly emerging mobile TV markets, such as T-DMB, ISDB-T and DVB-H, where receivers are being integrated into mobile phones, personal video players, portable DVD players, notebook PCs and automotive entertainment systems."
"The synergies between ADI and Integrant are powerful," said Integrant company founder, Beom-Kyu (Brian) Ko. "Together we will have the technology and systems expertise to provide customers with a complete signal chain for multi-standard multimedia applications."
Under the terms of the definitive stock purchase agreement, ADI expects to pay approximately $127 M in cash at the closing in exchange for substantially all of the outstanding shares of Integrant.
A portion of the consideration payable to the stockholders of Integrant will be placed into escrow to secure potential indemnification claims under the acquisition agreement and to facilitate the acquisition of the remaining shares not acquired at closing. ADI may pay up to an additional $33 M upon the achievement of certain milestones. The boards of directors of both companies have approved the acquisition, which is expected to close within approximately 60 days, following the satisfaction of regulatory requirements and other customary closing conditions. Upon closing, ADI will record a one-time charge for purchased in-process research and development expenses. The amount of that charge has not yet been determined.
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