Acquisition goes to plan

AMI Semiconductor has successfully completed its acquisition of certain assets of Starkey Laboratories' integrated circuit design centre for approximately $6 million in cash.

AMI Semiconductor has successfully completed its acquisition of certain assets of Starkey Laboratories' (Starkey) integrated circuit design centre for approximately $6 million in cash.

Under the terms of the asset purchase agreement, AMI Semiconductor acquired certain assets from the Starkey design centre located in Colorado Springs that designs specialised, low power audiology integrated circuits used in Starkey hearing aids.

As part of the acquisition, 20 highly skilled mixed signal and DSP designers will join AMI Semiconductor and will continue to specialise in the development of DSP based mixed signal ICs to complement AMI Semiconductor's existing design talent.

In addition, AMI Semiconductor and Starkey entered into a long-term supplier agreement whereby AMI Semiconductor is now the major supplier of silicon for Starkey's hearing aid products.

AMI Semiconductor expects this acquisition to be neutral to non-GAAP earnings per share in 2006.

"The acquisition and supplier agreement are designed to leverage the strengths of each company", stated Robert Tong, AMI Semiconductor's Senior Vice President, Medical and Wireless Group.

"In addition, this acquisition and long term supplier agreement add scale to our growing audiology core competencies and strengthen our relationship with Starkey".

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