Analog Devices to Sell Microphone Product Line to InvenSense
October 14 2013 - 3:10PM
Business Wire
Analog Devices, Inc. (NASDAQ: ADI) today announced that it has
signed a definitive agreement to sell the assets of its microphone
product line to InvenSense, Inc. (NYSE: INVN). InvenSense will
acquire the assets related to analog and digital output
microphones, as well as certain support operations, for $100
million in cash. These microphones were primarily used in consumer
applications and are expected to represent less than one percent of
ADI’s total revenue in the fourth quarter of fiscal year 2013,
which ends November 2, 2013.
“This agreement will allow ADI to focus on combining precision
sensing technology and signal processing systems expertise to
deliver the highest value to customers in our highest priority
markets while driving sustainable growth and profitability for
ADI,” said Mark Martin, vice president of ADI’s Sensor Products and
Technology Group. “The impact of high performance inertial sensing
innovation is increasing across automotive, industrial, and
healthcare applications and we are focusing our resources
accordingly.”
Pursuant to the agreement potential additional amounts will be
payable to ADI upon achievement over twelve months of certain
revenue milestones by InvenSense.
The boards of directors of both companies have approved the
transaction, which is expected to close by the end of October 2013,
following the satisfaction of customary closing conditions. Tax
assessments and any additional closing costs will reduce the net
amount of proceeds received by ADI from the transaction.
About Analog Devices
Innovation, performance, and excellence are the cultural pillars
on which Analog Devices has built one of the longest standing,
highest 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, representing virtually all types of electronic
equipment. Analog Devices is headquartered in Norwood,
Massachusetts, with design and manufacturing facilities throughout
the world. Analog Devices' common stock is included in the S&P
500 Index.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements address a variety of
subjects including, for example: the expected closing of the
transaction between ADI and InvenSense; the potential payment to
ADI of earnout consideration based on revenue from sales by
InvenSense of microphones; the expected benefits of the transaction
to ADI, InvenSense and customers; and ADI’s future business
strategy. Statements that are not historical facts, including
statements about beliefs and expectations, are forward-looking
statements. Such statements are based on current expectations and
are subject to a number of factors and uncertainties which could
cause actual results to differ materially from those described in
the forward-looking statements. The following important factors and
uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking
statements: the closing of the transaction is subject to certain
closing conditions, the failure of any of which may delay or
prevent the closing of the transaction; ADI may not receive all or
any part of the earnout consideration; the transaction may involve
unexpected costs, thereby reducing the net proceeds to ADI; the
expected benefits of the transaction may not be achieved in a
timely manner, or at all; and disruption from the transaction may
adversely affect relationships with customers, suppliers or
employees. For detailed information about factors that could cause
ADI’s actual results to differ materially from those described in
the forward-looking statements, please refer to ADI’s filings with
the Securities and Exchange Commission, including ADI’s most recent
Quarterly Report on Form 10-Q. Forward-looking statements represent
management’s current expectations and are inherently uncertain. We
do not undertake any obligation to update forward-looking
statements made by us.
Analog Devices, Inc.Investors Contact:Ali Husain,
781-461-3796ali.husain@analog.comorAll Other Inquiries
Contact:Maria Tagliaferro,
781-461-3282maria.tagliaferro@analog.com
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