Nordic Semiconductor ASA, partering with Avnet Electronics Marketing in Australia, and Chipidea, the world leader in analog/mixed-signal subsystems and intellectual property (IP), today announced that 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 installments 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.
The acquisition of this business further strengthens Chipidea’s position in data converter market and adds a significant catalog of IP to what is already the industry's widest, end-to-end, analog and mixed-signal portfolio. The Data Converter Business Unit of Nordic Semiconductor is a long-term technology leader in data conversion IP Products for in-house projects, third-party ASIC designs, and standard products. The designs are leading-edge analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) for use in areas such as digital photography, wireless networks and video. When closed, the acquisition will be immediately accretive for Chipidea.
The sale of Nordic’s Data Converter Business Unit will further 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.
"Chipidea offers one of the most popular lines of data converters in the industry and 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.
"The combination of these two businesses will allow Chipidea to significantly increase market share and strengthens our leadership position. We are very excited to be working with this group of very talented people to build on our combined leadership in this market."
“With today’s announcement Nordic is completing its transition from being a provider of design services and IP, to now, a leading 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.”