AUSTIN, Texas--(BUSINESS WIRE)--
Silicon
Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal ICs, today announced the acquisition of
Silicon Valley-based SpectraLinear, a late-stage private company
offering integrated timing solutions. Silicon Labs acquired the talented
SpectraLinear team and a complementary portfolio of programmable clock
ICs for approximately $40 million.
SpectraLinear's family of low-power, highly programmable and
small-footprint silicon clocking solutions is optimized for consumer
electronics and embedded applications such as portable media players,
residential gateways and digital cameras. Similar to Silicon Labs'
approach in the middle and high end of the timing market, SpectraLinear
leverages a high level of integration and programmability in its product
architectures to address cost-sensitive, high-volume applications. The
company's customer base includes industry leaders in the consumer market
including portable device, handset and communications gear makers.
SpectraLinear's innovative clock products complement Silicon Labs'
existing timing product line, by adding a broad family of ICs that
Silicon Labs believes will accelerate penetration of the approximately
$500 million opportunity in high-volume applications.
"By offering strong product synergies, tier one customer alignment and
an immediate footprint in the timing subsystem of consumer devices, this
acquisition further establishes Silicon Labs as a one-stop timing
solution provider," said Mark Downing, vice president of strategy and
business development. "We have established a successful timing portfolio
organically in high-performance applications, more than doubling our
timing revenue since 2008 to greater than 10 percent of our business. We
believe our acquisition of CMOS-based MEMS resonator technology in 2010
followed by today's acquisition of SpectraLinear will enable Silicon
Labs to accelerate market share gains in the timing market."
"This combination will allow us to leverage Silicon Labs' greater
resources and sales channel to reach a broader set of customers
globally," said Ilhan Refioğlu, CEO of SpectraLinear. "We believe the
product line synergy will allow us to hit the ground running and rapidly
capitalize on new revenue opportunities."
SpectraLinear is based in Santa Clara, California, with design centers
in Bangalore, India, and Istanbul, Turkey. The acquisition will bring 19
patents issued or pending and a team of 44 employees to Silicon Labs.
The acquisition is expected to be accretive to earnings, excluding the
amortization of intangibles, in its first full quarter of operations in
2011.
Webcast and Conference Call
A conference call discussing the acquisition and Silicon Labs' quarterly
results, also announced today, will follow this press release at 7:30
a.m. central time. An audio webcast will be available simultaneously on
Silicon Laboratories' website under Investor Relations (www.silabs.com).
A replay will be available after the call at the same website listed
above or by calling 1 (800) 642-1687 or +1 (706) 645-9291
(international) and by entering 38360353. The replay will be available
through February 9, 2011.
About Silicon Laboratories Inc.
Silicon Laboratories is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs' diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size
and power consumption. For more information about Silicon Labs, please
visit www.silabs.com.
Cautionary Language
This press release contains forward-looking statements based on Silicon
Laboratories' current expectations. The words "believe," "estimate,"
"expect," "intend," "anticipate," "plan," "project," "will,"
"expanding," "growing," and similar phrases as they relate to Silicon
Laboratories or SpectraLinear are intended to identify such
forward-looking statements. These forward-looking statements reflect the
current views and assumptions of Silicon Laboratories and are subject to
various risks and uncertainties that could cause actual results to
differ materially from expectations. Among the factors that could cause
actual results to differ materially from those in the forward-looking
statements are the following: risks related to the successful completion
of the development and implementation of SpectraLinear's technology;
risks that the acquisition may not yield the expected benefits due to
the failure to properly integrate the acquired business and employees;
risks that the acquired business' products and processes under
development may fail to achieve market acceptance; risks of disputes
regarding the acquired business and intellectual property; risks that
the performance of Silicon Laboratories' existing business may not
offset the dilutive effect of the acquisition; risks associated with the
competitive and cyclical nature of the semiconductor industry and other
factors that are detailed in Silicon Laboratories' filings with the SEC.
Silicon Laboratories disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Note to editors: Silicon Laboratories, Silicon Labs and the Silicon
Labs logo are trademarks of Silicon Laboratories Inc. All other product
names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Source: Silicon Laboratories Inc.
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