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ADI sells cellular chipset business to MediaTek

Posted: 12 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:ADI product lines? radio transceiver? baseband chipset? MediaTek Taiwan?

Taiwan's MediaTek Inc. has announced that it has signed a definitive agreement to acquire the assets related to Analog Devices Inc.'s Othello radio and SoftFone baseband chipset product lines, as well as certain cellular handset baseband support operations, for approximately $350 million in cash. These product lines represented approximately $230 million in revenue for ADI, based on fiscal year 2006 financial results.

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 worldwide; new radio transceiver and baseband chipset products, including GSM, GPRS, EDGE, W-CDMA and TD-SCDMA chipsets, to further strengthen its existing portfolio; and key patents and intellectual property to increase its competitiveness.

ADI plans to continue to invest in the wireless handset market by focusing on developing high-performance analog, MEMS and programmable DSP products that enhance the audio, video, connectivity and power-efficiency capabilities in a range of wireless multimedia devices.

According to ADI CEO Jerald Fishman, "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."

'Winning transaction'
"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.

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