Analog Devices (NASDAQ:ADI) is handing over the mic to InvenSense (NYSE:INVN). The former company announced that it has closed the sale of the assets of its microphone products business to the latter. Analog Devices will pocket the sale price of $100 million, and be eligible for additional amounts over the next year if certain revenue targets are met.
The two companies announced the deal in mid-October. At the time, the buyer was quoted as saying in a press release that the unit "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."
InvenSense has said that it does not expect a significant impact on earnings in its fiscal year from its new unit, save for possible onetime transaction and research and development costs.
Analog Devices will book a onetime gain in its Q4 for the transaction.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of InvenSense. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.