10 Sept 2007
MediaTek announced that it has signed a definitive agreement to acquire the assets related to the Analog Devices Othello radio and SoftFone baseband chipset product lines, as well as certain cellular handset baseband support operations, for approximately US$350 million in cash.
Through the acquisition, MediaTek's wireless handset division gains: a global team of approximately 400 product development and customer support professionals; an established customer base around the world; new radio transceiver and baseband chipset products, including GSM, GPRS, EDGE, WCDMA, and TD-SCDMA chipsets.
The boards of directors of both companies have approved the transaction, which is expected to close near the end of 2007, following the satisfaction of regulatory requirements and other customary closing conditions. Tax assessments and any additional closing costs will reduce the net amount of proceeds received by ADI from the transaction.
ADI plans to continue to invest in the wireless handset market by focusing on developing high-performance analog, micro-electro mechanical systems (MEMS), and programmable digital signal processing (DSP) products that enhance the audio, video, connectivity, and power efficiency capabilities in a range of wireless multimedia devices, said the company.
In ADI's recently completed third quarter of fiscal year 2007, revenues from these product lines represented US$43 million, or 6% of revenues, noted the company.
