Don't let it get away!
Help yourself with the Fool's FREE and easy new watchlist service today.
InvenSense (NYSE: INVN ) is, quite literally, stepping up to the mic. The company has reached agreement to buy all of the assets of Analog Devices' (NASDAQ: ADI ) line of microphones. The price is $100 million in cash, with potential additional consideration if certain financial targets are met over the next year.
In its press release, InvenSense touted the complimentary nature of the product line to its business. It said that the acquisition "is expected to accelerate InvenSense's audio roadmap and complement its current MEMS System on Chip (SoC) product offerings at existing mobile, gaming and wearable device customers, while gaining entry into new markets."
In addition to the physical assets of the microphone line, InvenSense will also acquire 30-40 Analog Devices core employees and support staff.
The deal is expected to close by the end of this month.InvenSense said it is not expected to "significantly" impact earnings in its current fiscal year, outside of possible onetime transaction and research and development costs related to the acquisition.