Intersil Corporation to acquire chipmaker Techwell Inc for $370 million

Intersil Corporation, maker of high performance analog semiconductors, yesterday agreed to acquire Techwell Inc for about $370 million in order to become the leading Video IC supplier in the security surveillance market.

San Jose, California-based Techwell, with over 200 employees in the US, China, Japan, South Korea and Taiwan, is a fabless semiconductor company that designs and sells mixed signal video solutions for the security surveillance and automotive infotainment markets.

Techwell's products enable the conversion of analog video signals to digital form and perform advanced digital video processing to facilitate the display, storage and transport of video content.

Techwell products are used in applications like industrial DVRs, networked video recorders, multiplexers, as well as automotive front consoles, rearview mirrors and rear seat LCD displays.

Milpitas, California-based Intersil Corporation is a leader in the design and manufacture of high-performance analog and mixed signal semiconductors. Intersil's products address some of the industry's fastest growing markets, such as flat panel displays, cell phones, notebooks and other handheld systems.

Under the deal, Intersil will acquire Techwell's outstanding shares of common stock at $18.50 per share. Techwell's directors and certain executive officers of Techwell holding approximately 23 per cent of the stock, have already agreed to tender their shares into the offer.