Spansion to Acquire Fujitsu's Microcontroller and Analog Business

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.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2398754, ~/Articles/ArticleHandler.aspx, 10/4/2015 4:03:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Duprey

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.


Today's Market

updated 1 day ago Sponsored by:
DOW 16,472.37 200.36 1.23%
S&P 500 1,951.36 27.54 1.43%
NASD 4,707.78 80.69 1.74%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CODE $0.00 Down +0.00 +0.00%
Spansion Inc CAPS Rating: **