Analog mix-signal chip maker Exar (NYSE:EXAR) announced today it has acquired analog integrated circuit maker Cadeka Microcircuits in a cash and stock deal valued at $29 million. There will also be an earn-out against net revenues contributed by Cadeka, the amount for which wasn't disclosed.
Pointing out that Cadeka's products are "direct or indirect replacements" for products made by Analog Devices, Linear Technology, and Texas Instruments' National Semiconductor unit, Exar President and CEO Louis DiNardo said "We expect that the acquisition will be neutral to modestly accretive to our profitability immediately. When we couple Cadeka's product offering with our global presence and reach, we will be able to grow revenue quickly and provide meaningful operating leverage."
Cadeka has facilities in Colorado and in both Shenzhen, and Wuxi, China. Its precision operational amplifiers, instrumentation amplifiers, comparators, filters, and data converter products are used in industrial and high reliability applications such as those in the medical electronics, aerospace, test and measurement, surveillance, and industrial control industries.
Headquartered in Fremont, Calif., Exar had revenues of $122 million for the year ending March 31, down almost 7% from the year-ago period.
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