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Product category: Communications ICs (Wireless)
News Release from: Analog Devices
Edited by the Electronicstalk Editorial Team on 12 June 2006

Acquisition to expand RF signal
processing

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Analog Devices has entered into a definitive agreement to acquire privately held Integrant Technologies of Seoul, Korea.

Analog Devices has entered into a definitive agreement to acquire privately held Integrant Technologies of Seoul, Korea An innovator in the field of high-performance analogue circuits designed for reconfigurable radio frequency (RF) signal processing, Integrant is the leading supplier of low-power radio tuners that allow mobile communications, computer, and consumer devices to receive digital television (TV) and digital radio broadcasts

Founded in 2000, Integrant has an established revenue base and gross margins consistent with highly-differentiated, low-power RF technology.

The acquisition is expected to increase ADI's revenue by approximately 1% of sales in each of the next few quarters.

The Integrant organisation will team with ADI's high-speed signal processing organisation, whose innovations in RF design focus on receivers and transceivers for broadband wireless, satellite radio and terrestrial and cable TV.

According to John Hussey, ADI Vice President for High-Speed Signal Processing: "As we've seen in applications from cellular telephony to digital TVs, customers value RF solution providers that support multiple standards and frequencies with compatible families of products".

"Integrant's technology provides that same value to the rapidly emerging mobile TV markets, such as T-DMB, ISDB-T and DVB-H, where receivers are being integrated into mobile phones, personal video players, portable DVD players, notebook PCs, and automotive entertainment systems".

Integrant is best known for the low-power Digital Multimedia Broadcast (DMB) tuners it supplies to Korea's leading mobile phone manufacturers.

Korea leads the world in the deployment of mobile TV services.

In addition, Integrant ships tuners from the same product family to support the new ISDB-T mobile TV standard in Japan.

Integrant's highly innovative designs have resulted in over 100 patents and patent applications worldwide, including extensive intellectual property related to the direct conversion of RF signals to baseband frequencies, an area where ADI has also amassed considerable intellectual property for analogue and digital signal processing.

"The synergies between ADI and Integrant are powerful", said Integrant company founder, Beom-Kyu (Brian) Ko.

"Together we will have the technology and systems expertise to provide customers with a complete signal chain for multistandard multimedia applications".

Under the terms of the definitive stock purchase agreement, ADI expects to pay approximately $127 million in cash at the closing in exchange for substantially all of the outstanding shares of Integrant.

A portion of the consideration payable to the stockholders of Integrant will be placed into escrow to secure potential indemnification claims under the acquisition agreement and to facilitate the acquisition of the remaining shares not acquired at closing.

ADI may pay up to an additional $33 million on the achievement of certain milestones.

The boards of directors of both companies have approved the acquisition, which is expected to close within approximately 60 days, following the satisfaction of regulatory requirements and other customary closing conditions.

on closing, ADI will record a one-time charge for purchased in-process research and development expenses.

The amount of that charge has not yet been determined.

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