SAN JOSE--Micrel Inc. here today announced the acquisition of privately held Electronic Technology Corp., a developer of power management and mixed-signal chips based in Huxley, Iowa. The purchase was made with $6.1 million in Micrel stock.
ETC's product portfolio consists of power supply supervisor products and some custom ICs for automotive applications. Micrel said ETC had revenues of $2.6 million in 1999. The Iowa company has a dozen employees performing product development, marketing, testing, and quality assurance.
Under the acquisition agreement, Micrel issued 76,120 shares of common stock in exchange for the outstanding shares of capital stock in ETC. The purchase will be accounted for as a pooling of interests and to qualify as a tax-free reorganization, said the San Jose chip company.
"This transaction is consistent with Micrel's strategy to expand its technology and product portfolio in high performance analog and mixed-signal markets," said Ray Zinn, president & CEO of Micrel. "ETC's design expertise is highly complementary with Micrel's existing design talent." Zinn added that ETC will add "valuable, programmable digital functionality to future mixed-signal products."
ETC's power supply supervisor products are used in the same systems that Micrel serves with its current power products, said Andy Burkland, president of ETC. "And our automotive experience includes a product that integrates an embedded controller with a high resolution A/D converter -- demonstrating a level of mixed signal integration capability that will be very useful to Micrel going forward," Burkland added. ETC's systems are is registered to ISO 9001 and QS-9000 industry quality standards.