InvenSense to buy Analog's MEMS microphone business
This move is expected to accelerate InvenSense's audio roadmap and expand its product portfolio and technology expertise
InvenSense, Inc. has entered into a definitive purchase agreement to acquire all the assets of Analog Devices' MEMS microphone business line (MBL).
This will include intellectual property, goodwill and certain tangible and intangible assets. InvenSense will also assume certain specified liabilities of ADI related to the MBL.
The acquisition of ADI's MBL is expected to accelerate InvenSense's audio roadmap and complement its current MEMS System on Chip (SoC) product offerings at existing mobile, gaming and wearable device customers, while gaining entry into new markets. The acquisition also is intended to expand InvenSense's patent portfolio and existing tier one customer base, which includes major OEM brands worldwide.
The transaction includes approximately 30 - 40 of ADI's core employees within the MPL product line and certain support operations, located primarily in Wilmington, Massachusetts, Bratislava, Slovakia and Shanghai, China.
ADI's MBL product line includes all MEMS microphone devices and complete turnkey reference designs.
"Our fabless MEMS business model and our leadership in MotionTracking solutions have positioned us for significant growth in the coming years in our existing markets," says Behrooz Abdi, President & Chief Executive Officer, InvenSense, Inc.
Abdi adds, "Audio is fast becoming complementary to motion as a means for interacting with contextually aware devices and applications, with an increasing attach rate of 2-3 microphones per high-end phone. With this acquisition, we are excited to welcome an exceptionally experienced team into InvenSense that will enable us to significantly scale our audio product portfolio, accelerate our time to market, and achieve long-term growth in the broader sensor SoC market."
The acquisition says InvenSense will pay $100 million in cash in exchange for ADI's MBL assets.
Additional cash consideration may be payable upon achievement over 12 months of certain mutually agreed upon financial targets. The board of directors of each company has approved the transaction and stockholder approval of the transaction is not required by either company.
The closing, which is targeted to occur during October 2013, remains subject to customary closing conditions. In connection with the transaction, ADI will provide certain transition related services to InvenSense, which includes supplying MBL inventory for a limited period of time following the sale.
InvenSense may record one-time costs for transaction expenses and purchased in-process research and development expenses related to the acquisition in the quarter in which the transaction closes. The amount of those costs, if any, has not yet been determined.
Other than these one-time costs, the transaction is not expect to significantly impact earnings for the balance of InvenSense's fiscal year ending March 2014 and is expected to be accretive to earnings thereafter.
Conference Call Information
Management at InvenSense will include comments about the asset acquisition and answer investor questions during its regularly scheduled investor conference call currently scheduled to be held at 1:30 pacific standard time October 29th, 2013 .
To listen to the conference call, you can dial (877) 474-9506 ten minutes prior to the start of the call, using the passcode 10491885.
International callers are advised to dial (857) 244-7559.
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for one week.
To access the replay, please dial (888) 286-8010 and enter passcode 84781939.
International callers please dial (617) 801-6888.
The conference call will be available via a live webcast on the investor relations section of InvenSense's web site at www.invensense.com/ir. An archived webcast replay will be available on the web site for three months.
