Sunday, January 9, 2011

SMSC to Acquire Conexant for $284 Million

SMSC, a supplier of Smart Mixed-Signal Connectivity silicon, agreed to acquire Conexant Systems in a deal valued at approximately $284 million.

Conexant develops silicon for imaging, audio, embedded modem, and video surveillance. Conexant, which is headquartered in Newport Beach, California, has approximately 600 employees worldwide, including over 230 in Asia.

The companies said their complementary connectivity product portfolios covers an expansive set of computing, consumer, industrial and automotive applications. The combined company has anticipated annualized pre-tax cost synergies of $8 to $10 million by the end of SMSC's fourth quarter of fiscal 2012.

"In our industry, size and scope provide a significant advantage with customers and suppliers," said Scott Mercer, Conexant's Chairman and Chief Executive Officer. "SMSC and Conexant share similar core competencies in analog and mixed-signal design, possess complementary product portfolios, and count many customers in common. By joining forces, we get the opportunity to take advantage of economies of scale and drive profitable growth. I am convinced that combining our companies will best serve the interests of Conexant stockholders, customers, and employees moving forward."