PALM BAY, Fla.--Intersil Holding Corp. here moved to beef up its future in the wireless networking market with an agreement to acquire No Wires Needed B.V., a Dutch company supplying medium access control (MAC) chips and technology supporting high-speed data rates.
Intersil said it has agreed to buy the six-year-old company for about $90 million in stock, depending upon share price at the time the transaction closes in the next 30 days. The acquisition is aimed at positioning Intersil--a semiconductor spin-off from Harris Corp.--as a leading contender in future 5-GHz wireless local area networking applications.
"There is great synergy here, with their complimentary technologies helping speed our transition to high growth, higher gross margin integrated communications solutions -- a transition that is already ahead of plan," said Greg Williams, president and CEO of Intersil, which spun out of Harris Corp. last year. Williams maintained that the wireless chip businesses of Intersil and No Wires Needed are showing strong growth.
"Sequential sales growth in the first quarter of calendar 2000 was 54% for our PRISM wireless business while No Wires Needed reported an increase of 47%," he said.
Based in Bilthoven, the Netherlands, No Wires Needed supplies MAC devices, based on the ARM processor core, for the IEEE802.1 wireless specification for LANs. The company's MAC technology supports up to 54 megabit-per-second data rates, and Intersil believes this capability will be a strong candidate for emerging 5-GHz wireless standards. Intersil currently supplies 11-Mbit/sec. products for the IEEE802.1 standard.
"The 11-Mbit/sec. high-data rate market is growing and will be a significant opportunity for years," Williams said. "Voice over Internet, high-data rate web browsing and digital video are all available now with our fast PRISM II chip sets." Intersil believes No Wires Needed's technology will serve higher rata-rate applications, such as wireless networks for multi-channel voice and digital video in homes and offices.
Under the acquisition agreement announced Thursday, stockholders of No Wires Needed will receive 3.0 million to 3.35 million Intersil shares, depending upon the stock's price when the deal is completed. "This transaction is expected to be neutral to our calendar year 2000 earnings before goodwill amortization," Williams said. "We anticipate it will become accretive, on a cash earnings basis, early in 2001. That revenue should grow to $50 million, on an annualized run rate, by the fourth quarter of 2001."