US audio chips supplier Cirrus Logic to buy British rival Wolfson Microelectronics for $468 mn
29 Apr 2014
Cirrus Logic Inc, a US-based supplier of audio chips for Apple devices, today struck a deal to buy its British rival Wolfson Microelectronics Plc for €278 million ($468 million).
Under the all-cash deal including debt, Cirrus Logic will pay 235 pence a share, amounting to a 75-per cent premium to Wolfson's stock closing price of 134 pence on Monday.
Edinburgh-based Wolfson, a supplier for certain 3G mobile devices of Samsung, specialises in audio technology and has a market cap of $278 million.
Its audio chips are found in many of the world's leading digital consumer goods, including mobile phones, tablet computers, premier hi-fi equipment, gaming devices, MP3 players, flat panel televisions, digital still cameras and portable navigation devices.
Founded in 1984 as a spin-out from Edinburgh university, Wolfson has over 400 employees working out of 12 locations worldwide.
With a market cap of $1.4 billion, Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of customers.
The Texas-based company has more than 1,000 patents, over 600 products, and more than 2,500 customers globally.
Founded in Salt Lake City in 1981 as Patil Systems, Inc by Dr. Suhas Patil and later changed its name to Cirrus Logic, the company went public in 1989 and is listed on the Nasdaq Stock Exchange.
Cirrus Logic said that the transaction is expected to strengthen its ability to expand its customer base with highly differentiated, end-to-end audio solutions for portable audio applications.
''Wolfson has a rich history of audio innovation, a broad catalog of audio products and a first class customer list,'' said Jason Rhode, Cirrus Logic president and CEO.
''This acquisition strengthens Cirrus Logic's core business as a leader in audio signal processing components, enhances our ability to differentiate our products with software, and adds new product categories such as MEMS microphones to our portfolio,'' he added.
''The Board of Wolfson believes that this is an attractive offer for Wolfson shareholders,'' said Michael Ruettger, chairman of Wolfson. ''We believe this reflects the hard work thatMike Hickey and his team have put into building Wolfson as a leader in the supply of high performance Audio Hubs and MEMS microphones to the consumer electronics market.''
