Chipidea to acquire data converter business unit from Nordic Semiconductor ASA
Nordic Semiconductor ASA and Chipidea announced they have entered into a definitive agreement for Chipidea to acquire the assets of Nordic Semiconductor's Data Converter IP Business Unit for $6 million in cash.The purchase price will be paid with an upfront payment upon closing the transaction of $2.6 million and with the remainder spread out in equal instalments over the next 2.5 years. The agreement is subject to a period of limited due diligence and approvals from both companies' Board of Directors. The transaction is expected to be closed by the end of February 2007. When closed, the acquisition will be immediately accretive for Chipidea.
The sale of Nordic's Data Converter Business Unit will strengthen Nordic Semiconductor's focus on radio frequency (RF) components for the wireless personal area network, primarily in the 2.4 GHz frequency band including both proprietary and Wibree radios.
"We believe that our IP, architecture and technology roadmaps are highly complementary with the data converter business of Nordic Semiconductor," said José Franca, Co-founder, President and CEO, Chipidea. "We are very excited to be working with this group of very talented people to build on our combined offerings in this market."
"With this announcement Nordic is completing its transition from being a provider of design services and IP, to a European fabless semiconductor supplier of standard RF components," added Nordic CEO, Svenn-Tore Larsen. "Over the years, Nordic Semiconductor's Data Converter Business Unit has made significant technical advancements and won major customers. The data converter market continues to present an attractive business opportunity, and we believe this business and its assets are an optimal fit for Chipidea. We have known Chipidea in the market for a long time and believe it has the ability to provide a stimulating working environment for the team and grow the business while maintaining customer commitments."
