MediaTek to acquire Analog Devices Cellular handset radio and baseband chipset operations
Through this acquisition, MediaTek’s wireless handset division gains: a global team of approximately 400 experienced product development and customer support professionals; an established customer base around the world; new radio transceiver and baseband chipset products, including GSM, GPRS, EDGE, WCDMA, and TD-SCDMA chipsets, to further strengthen its existing portfolio; and key patents and intellectual property to increase MediaTek’s competitiveness.
ADI plans to continue to invest in the wireless handset market by focusing on developing high-performance analog, micro-electro mechanical systems (MEMS), and programmable digital signal processing (DSP) products that enhance the audio, video, connectivity, and power efficiency capabilities in a range of wireless multimedia devices. According to Jerald G. Fishman, ADI’s president and CEO, “This transaction will allow ADI to focus our resources in areas where our signal processing expertise can provide unique capabilities and earn superior returns. In addition, it unlocks the value of the Othello and SoftFone operations by creating the scale needed to support the R&D investment required for sustainable, long-term success.”
“This is a winning transaction for customers of both companies,” said JiChang Hsu, general manager of MediaTek’s wireless business. “With these added resources, our customers will be assured a roadmap of innovative solutions supported by a talented team that is focused on the needs of the wireless handset industry. Moreover, this acquisition will also bolster MediaTek’s global operations and development in converging consumer solutions.”
The boards of directors of both companies have approved the transaction, which is expected to close near the end of 2007, following the satisfaction of regulatory requirements and other customary closing conditions. Tax assessments and any additional closing costs will reduce the net amount of proceeds received by ADI from the transaction.
In ADI’s recently completed third quarter of fiscal year 2007, revenue from these product lines represented $43 million, or 6% of revenue. ADI plans to account for the divested operations as a discontinued operation. Excluding these operations, ADI estimates that its third quarter of fiscal year 2007 gross margin as a percentage of revenue would have been approximately 170 basis points higher, operating margin as a percentage of revenue would have been approximately 200 basis points higher, and diluted earnings per share would have been approximately $0.01 higher.
About MediaTek Inc.
MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital media solutions. The company is a market leader and pioneer in cutting-edge System-On-Chip system solutions for wireless communications, high-definition digital TV, optical storage, and high-definition DVD products. Founded in 1997 and listed on Taiwan Stock Exchange under the code "2454", MediaTek is headquartered in Taiwan and has sales and research subsidiaries in China, India, U.S., Korea and Singapore. For more information, please visit MediaTek’s website at www.mtk.com.tw.
Analog Devices GmbH
About Analog Devices
Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the most long-standing, high-growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers around the world, representing virtually all types of electronics equipment. Celebrating more than 40 years as a leading global manufacturer of high-performance integrated circuits used in analog and digital signal processing applications, Analog Devices, Inc. is headquartered in Norwood, near Boston, Massachusetts, and employs approximately 8,900 people worldwide. It has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, and the Philippines. Analog Devices' common stock is listed on the New York Stock Exchange and ADI is included in the S&P 500 Index.
About Analog Devices in Europe
In Europe, Analog Devices accounts for about one fifth of the company's worldwide revenues and worldwide work force. The company has a manufacturing facility in Limerick, Ireland, and seven design centers in Denmark, England, Scotland, Spain and Ireland. European client references include main telecom equipment manufacturers Alcatel, Ericsson and Nokia-Siemens-Networks, automotive systems manufacturers such as Autoliv and Continental, as well as consumer references such as Harman and Philips, and a variety of industrial clients including ABB, Agilent Technologies and Rhode & Schwarz.