Sunday, June 24, 2007

Zarlink to Acquire Legerity - Targeting Voice over Packet

Zarlink Semiconductor agreed to acquire privately held Legerity Holdings, Inc., a leading developer and supplier of voice ICs for carrier, enterprise and residential gateway equipment, for US$134.5 million in cash, subject to working capital adjustments.



Legerity, which is based in Austin Texas, has grown revenue from US$88 million in calendar year 2004 to US$113 million in calendar year 2006. For the calendar year 2006, income from operations was US$5.1 million and net income was US$4.1 million. Over its 27 year history, the company has shipped over 450 Million lines of DSP-based analog mixed signal products and nearly 320 Million SLIC lines.



Zarlink said it portfolio of network synchronization, voice enhancement and telecom-related products will be combined with Legerity's products and technologies to create a powerful platform for the growing deployment of next-generation networks.



Zarlink intends to fund this acquisition through a combination of its cash resources and, as required, draw down on a bridge facility of up to US$50 million.



"This acquisition will accelerate and expand Zarlink's plans for the voice-over-packet market," said Kirk K. Mandy, President and CEO, Zarlink Semiconductor. "Both companies are designing complementary technologies that enable high-quality voice services. We share a very similar customer base but are not direct competitors. As a result, we expect there to be substantial cross-selling opportunities across a larger customer base and plan to deliver more integrated, higher-value solutions for the rapidly growing voice-over-Internet and voice-over-cable markets."http://www.zarlink.com

http://www.legerity.com

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