SAN FRANCISCO Integrated Device Technology (IDT) said Monday (Sept. 26) that it has exercised an option to purchase Freescale Semiconductor's timing solutions business for $35 million.
Under the terms of the transaction, IDT will acquire Freescale’s high-performance clocking solutions targeted at the networking, server, storage and memory clocking markets, as well as assets. IDT said that it has also entered into a long-term foundry agreement with Freescale for the acquired products. Plans call for the Freescale timing solutions team to be integrated with IDT's Tempe, Ariz.-based product team.
IDT (San Jose, Calif.) said the acquisition would allow the company to expand its portfolio of silicon-based communications timing solutions and to enhance its expertise in this area.
The transaction was originally initiated by Integrated Circuit Systems Inc. (ICS) before it was acquired by IDT for $1.7 billion in June.
“Adding the Freescale timing products to our portfolio of communications devices further strengthens our comprehensive family of silicon-timing solutions,” said Greg Lang, IDT president and CEO, in a statement. “The Freescale timing solutions products have received strong customer acceptance and are optimized for the Freescale processors, which are an integral part of many leading communication designs. This transaction, in addition to our recent merger with ICS, enables IDT to further demonstrate its leadership position in the silicon-based communications market segment.”