In an acquisition that's expected to provide incremental revenue and align with its strategy to expand into system-on-chip solutions, flash memory maker Spansion (NYSE: CODE ) said it will acquire the microcontroller and analog business of Fujitsu Semiconductor for approximately $110 million, plus approximately $65 million for inventory.
As customers seek faster and more intelligent devices, embedded nonvolatile memory has become a key differentiator within the microcontroller market. By acquiring the products, intellectual property, and employees of Fujitsu, Spansion believes its flash technology will accelerate the next generation development of the "Internet of everything" in automotive, industrial, and consumer applications. Cisco has said it estimates by 2020 there will be some 50 billion devices connected to the Internet.
Spansion president and CEO John Kispert said: "We will gain valuable people and intellectual property as well as microcontroller and analog products that will enable us to expand our customer base, addressing complete embedded systems requirements in automotive, industrial and consumer markets. We have been strategic partners with Fujitsu Semiconductor for decades and share many of the same customers. We expect a seamless transition for all of the employees and customers."
The acquisition is expected to be completed sometime between July and September, and the net impact is expected to be accretive for Spansion.