Cirrus acquires Chinese IC design house

Cirrus Logic Inc. has purchased all of the outstanding stock in Caretta Integrated Circuits Inc., a fabless IC design company based in Shanghai, China.

In connection with the acquisition, Cirrus Logic paid Caretta's stockholders $10.5 million in cash and has agreed to pay certain employees a potential earn-out based on financial performance over the next two years.

Founded in 2004, Caretta has focused its initial IC development efforts on a battery protection IC for the single-cell lithium ion battery market. With offices in Shanghai and Shenzhen, Caretta employs 37 people, including 30 engineers.

"Acquiring Caretta expands and diversifies Cirrus Logic's expertise in analog IC technology, enables increased development of China-originated intellectual property, and provides us with a stronger, long-term strategic position to grow in China by developing our China-based organization," said David D. French, president and chief executive of Cirrus Logic, in a statement. "This acquisition further strengthens Cirrus Logic's growth efforts toward expanding segments of the analog, mixed-signal IC market."

The company expects to recognize a one-time charge of $1 million to $4 million in the December quarter of 2006. This transaction is expected to be neutral to earnings per share in calendar 2007.

- Mark LaPedus
EE Times