Silicon Laboratories has acquired Silicon Magike in an all-cash transaction for approximately $16 million.
Silicon Laboratories has acquired privately held Silicon Magike, an Austin-based development-stage company creating high-voltage, high-performance, mixed-signal ICs. Silicon Magike’s team of mixed-signal design veterans has more than 200 years of combined precision analogue design expertise in many fields including telecommunications, networking, high-voltage semiconductor physics and high-voltage precision analogue circuit design. ‘This technology acquisition brings us a very experienced mixed-signal design team and significant development progress on high-voltage products, which are traditionally high margin, highly differentiated and address a large, fragmented market’, said Nav Sooch, Chairman and Interim Chief Executive Officer of Silicon Laboratories.

‘This acquisition is consistent with our customer and market diversification strategy and further expands our world-class design team’.

Silicon Laboratories acquired Silicon Magike in an all-cash transaction for approximately $16 million.

The terms of the transaction also provide for the potential of additional cash consideration based on business performance metrics over the 18 month period ending 30th June 2007.

Silicon Magike’s team, consisting of approximately a dozen engineers, includes industry veterans responsible for significant mixed-signal innovation throughout their collective careers.

The company’s technology will augment and complement existing Silicon Laboratories products and will also enable Silicon Laboratories to address new multi-billion-dollar high-voltage market opportunities.

‘We are very pleased to be part of the Silicon Laboratories team’, said Russ Apfel, founder, Chairman and Chief Technical Officer of Silicon Magike.

‘We believe the technology we have been working on will dramatically reduce the complexity and cost of high-voltage ICs and create a long-term competitive advantage while contributing to Silicon Laboratories’ diversification, growth and profitability goals over time’.

Silicon Laboratories’ third quarter results are expected to include purchased R and D and transaction costs as a one time charge.

This transaction is also expected to be dilutive to EPS in the third quarter.