News Article
SMSC buys Oasis to gain foothold in Europe
German fabless semiconductor company Oasis SiliconSystems has been bought by US chip maker SMSC for US$94 million in cash stock.
German fabless semiconductor company Oasis SiliconSystems has been bought by US chip maker SMSC for US$94 million in cash stock.
Karlsruhe-based Oasis develops integrated circuits for automotive infotainment networks. The company’s Media Oriented Systems Transport technology transmits digital audio, video and packet-based data within automobiles.
Clients include Audi, BMW, Fiat, Jaguar, Land Rover, Mercedes-Benz, Porsche, PSA, Saab and Volvo.
Oasis made a profit on revenues of $50 million in 2004 and is expected to achieve double-digit growth in revenues and earnings in 2005.
SMSC chairman, president and CEO Steven Bilodeau said that the acquisition of Oasis was key step in the company’s diversification plan.
"This acquisition enables the company to strengthen its business with broader product lines. Furthermore, it provides geographic diversity and increases brand visibility by establishing SMSC as an important semiconductor provider in Europe."
Oasis CEO Herbert Hetzel said: "SMSC's strong business infrastructure will provide access to greater resources and an outstanding supply chain for Oasis’s existing customer base, enabling us to provide them with an even higher level of service and support."
Before amortisation of acquired intangibles and in-process R&D charges, the acquisition transaction is expected to be neutral to SMSC's earnings in the first quarter of fiscal 2006.
Karlsruhe-based Oasis develops integrated circuits for automotive infotainment networks. The company’s Media Oriented Systems Transport technology transmits digital audio, video and packet-based data within automobiles.
Clients include Audi, BMW, Fiat, Jaguar, Land Rover, Mercedes-Benz, Porsche, PSA, Saab and Volvo.
Oasis made a profit on revenues of $50 million in 2004 and is expected to achieve double-digit growth in revenues and earnings in 2005.
SMSC chairman, president and CEO Steven Bilodeau said that the acquisition of Oasis was key step in the company’s diversification plan.
"This acquisition enables the company to strengthen its business with broader product lines. Furthermore, it provides geographic diversity and increases brand visibility by establishing SMSC as an important semiconductor provider in Europe."
Oasis CEO Herbert Hetzel said: "SMSC's strong business infrastructure will provide access to greater resources and an outstanding supply chain for Oasis’s existing customer base, enabling us to provide them with an even higher level of service and support."
Before amortisation of acquired intangibles and in-process R&D charges, the acquisition transaction is expected to be neutral to SMSC's earnings in the first quarter of fiscal 2006.
