NORWOOD, Mass.--(BUSINESS WIRE)--
Analog Devices, Inc. (NASDAQ: ADI) today announced that it has signed a
definitive agreement to sell the assets of its microphone product line
to InvenSense, Inc. (NYSE: INVN). InvenSense will acquire the assets
related to analog and digital output microphones, as well as certain
support operations, for $100 million in cash. These microphones were
primarily used in consumer applications and are expected to represent
less than one percent of ADI's total revenue in the fourth quarter of
fiscal year 2013, which ends November 2, 2013.
"This agreement will allow ADI to focus on combining precision sensing
technology and signal processing systems expertise to deliver the
highest value to customers in our highest priority markets while driving
sustainable growth and profitability for ADI," said Mark Martin, vice
president of ADI's Sensor Products and Technology Group. "The impact of
high performance inertial sensing innovation is increasing across
automotive, industrial, and healthcare applications and we are focusing
our resources accordingly."
Pursuant to the agreement potential additional amounts will be payable
to ADI upon achievement over twelve months of certain revenue milestones
by InvenSense.
The boards of directors of both companies have approved the transaction,
which is expected to close by the end of October 2013, following the
satisfaction of customary closing conditions. Tax assessments and any
additional closing costs will reduce the net amount of proceeds received
by ADI from the transaction.
About Analog Devices
Innovation, performance, and excellence are the cultural pillars on
which Analog Devices has built one of the longest standing, highest
growth companies within the technology sector. Acknowledged
industry-wide as the world leader in data conversion and signal
conditioning technology, Analog Devices serves over 60,000 customers,
representing virtually all types of electronic equipment. Analog Devices
is headquartered in Norwood, Massachusetts, with design and
manufacturing facilities throughout the world. Analog Devices' common
stock is included in the S&P 500 Index.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements address a variety of subjects including, for
example: the expected closing of the transaction between ADI and
InvenSense; the potential payment to ADI of earnout consideration based
on revenue from sales by InvenSense of microphones; the expected
benefits of the transaction to ADI, InvenSense and customers; and ADI's
future business strategy. Statements that are not historical facts,
including statements about beliefs and expectations, are forward-looking
statements. Such statements are based on current expectations and are
subject to a number of factors and uncertainties which could cause
actual results to differ materially from those described in the
forward-looking statements. The following important factors and
uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking statements: the
closing of the transaction is subject to certain closing conditions, the
failure of any of which may delay or prevent the closing of the
transaction; ADI may not receive all or any part of the earnout
consideration; the transaction may involve unexpected costs, thereby
reducing the net proceeds to ADI; the expected benefits of the
transaction may not be achieved in a timely manner, or at all; and
disruption from the transaction may adversely affect relationships with
customers, suppliers or employees. For detailed information about
factors that could cause ADI's actual results to differ materially from
those described in the forward-looking statements, please refer to ADI's
filings with the Securities and Exchange Commission, including ADI's
most recent Quarterly Report on Form 10-Q. Forward-looking statements
represent management's current expectations and are inherently
uncertain. We do not undertake any obligation to update forward-looking
statements made by us.
Analog Devices, Inc.
Investors Contact:
Ali Husain,
781-461-3796
ali.husain@analog.com
or
All
Other Inquiries Contact:
Maria Tagliaferro, 781-461-3282
maria.tagliaferro@analog.com
Source: Analog Devices, Inc.
News Provided by Acquire Media
