SAN FRANCISCO AMI Semiconductor Inc. said Monday (July 31) it has entered into an agreement to acquire the ultra-low power (ULP) six-transistor SRAM and medical system-on-chip (SOC) ASIC businesses of NanoAmp Solutions Inc. for approximately $21 million in cash, plus an adjustment for closing inventory of the business.
NanoAmp Solutions' ULP SRAM technology is implemented in a 180-nanometer process and is, according to AMI, valued by medical customers as embedded IP for implantable medical SOC applications. Under conditions of the proposed sale, to be structured as an asset purchase, AMI will acquire certain assets and assume certain liabilities of the business, which collectively employ about 25 people in the U.S., Korea and Taiwan.
"By combining NanoAmp's class-leading ULP SRAM technology with our ULP mixed-signal and digital signal processing capabilities, we are able to enhance our core competencies and strengthen our leadership position in the implantable medical market," said Christine King, AMI president and CEO, in a statement. "In addition, this acquisition adds medical-qualified ULP SRAM technology to our core competencies, available as embedded IP or as ASSPs, as well as new design wins in the 180-nm medical SOC market."
The businesses to be acquired consist primarily of designs that are still in development, AMI said, but added that the SRAM business is currently providing revenue, anticipated at approximately $7 million to $8 million in 2006. For the balance of 2006, the acquisition is expected to be neutral to non-GAAP earnings per share and be accretive by 1 cent per share in 2007, AMI said. The transaction is expected to close during the third calendar quarter, AMI said.
Last week, AMIS Holdings Inc., AMI's parent company, said second quarter 2006 revenue was $150.7 million, an increase of 9 percent sequentially and 23 percent compared to the second quarter of 2005.