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Maxim, UEI purchase certain Zilog assets

Posted: 23 Feb 2009 ?? ?Print Version ?Bookmark and Share

Keywords:assets Zilog purchase? universal control remote? Maxim UEI purchase?

Maxim Integrated Products Inc. and Universal Electronics Inc. (UEI) have purchased certain assets of Zilog Inc. In a simultaneous closing, Maxim acquired technology, intellectual property (IP) and assets for Zilog's universal remote control hardware and secure transaction businesses, and UEI acquired technology, IP and assets of Zilog's remote control and universal IR database solution. The parties have cross-licensed technology and IP to each other for purposes of the continued conduct of their respective businesses.

The purchase price for these assets is approximately $31 million in cash, $3.1 million of which will remain in escrow for up to one year. After giving effect to payments for taxes, professional fees, employee-related costs and other transaction costs, and after deducting the escrow amount, Zilog will net approximately $22 to $24 million in net cash proceeds from these transactions. As of March 31, 2009, Zilog expects its ending cash balance (exclusive of the escrow amount) to be between $31 to $34 million. Zilog's board of directors will first review the revised fiscal year 2010 operations plan prior to the determination of how that cash will be used.

"Zilog decided early last year to review a broad range of strategic alternatives to enhance shareholder value, and we believe these transactions have done so," said Darin Billerbeck, Zilog CEO. "In addition to improving our financial structure and liquidity, they allow the company to streamline operations, generate cash and focus on continuing to innovate in our core microcontroller business."

As part of the transaction, Maxim and UEI or their affiliates are making employment offers to approximately 128 Zilog employees primarily located in the United States, India and the Philippines. Zilog will retain its classic and flash microcontroller business and Crimzon Connects.

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