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Semtech expands portfolio with Gennum buy

Posted: 25 Jan 2012 ?? ?Print Version ?Bookmark and Share

Keywords:mixed-signal? analog? acquisition? enterprise computing?

Semtech Corp. has reached an agreement to buy fellow analog and mixed-signal chip vendor Gennum Corp. in a cash deal worth nearly $494 million. Semtech said it will finance the acquisition through a combination of cash on hand and new financing, saying it has received a financing commitment of up to $400 million from Jefferies Finance LLC.

Semtech said its management believes the acquisition of Gennum will extend the firm's portfolio of infrastructure products to the metro, access and enterprise computing markets and will allow Semtech to provide its customers with more platforms to differentiate their own high-speed voice, video and data transmission products.

Gennum�designs and sells products that enable video, data and multimedia content to be transmitted at high speed over long distances, while maintaining signal integrity and eliminating the potential for errors in transmission. Its products are used in broadcast, networking, storage, telecommunications and consumer connectivity equipment.

"We believe Gennum's unique signal integrity solutions and highly differentiated 1Gb/s to 25Gb/s optical products combined with Semtech's leading 40Gb/s and 100Gb/s SerDes portfolio will deliver one of the industry's most complete and robust portfolios to the communications infrastructure, data communications and enterprise computing segments," stated Mohan Maheswaran, Semtech's president and CEO.

Under the terms of the deal, upon closing of the transaction, Semtech will pay Gennum shareholders about $13.45 for each share of Gennum. The agreement also contains nearly $19.2 million termination fee payable by Gennum in certain circumstances, the companies stated.

Gennum's board of directors has already unanimously approved the transaction, the companies added.

- Dylan McGrath
??EE Times

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