MANHASSET, N.Y. AMI Semiconductor has agreed to to purchase certain assets of Starkey Laboratories Inc.'s integrated circuit design center located for $6 million in cash.
Located in Colarado Springs, Colo., the Starkey Laboratories design center designs specialized, low power audiology integrated circuits used in Starkey Laboratories Inc.'s hearing aids.
AMI Semiconductor (Pocatello, Idaho) expects the transaction to close during the second calendar quarter and anticipates that it will be neutral to non-GAAP earnings per share in 2006.
In connection with the proposed acquisition, AMI Semiconductor and Starkey Laboratories Inc. also intend to enter into a long-term supplier agreement whereby AMI Semiconductor will be a major silicon supplier for Starkey Laboratories Inc.
"We're very pleased with the prospects for this agreement, which will strengthen the relationship between the two companies," said Robert Tong, AMI Semiconductor's senior vice president, medical and wireless group, in a statement.
"Our agreement with AMI Semiconductor recognizes the strength of each company," stated Jerry Ruzicka, Starkey's president. "As a leader in Hearing Research, Starkey's application of current and future AMI Semiconductor technology will ensure new benefits to the hearing impaired community."