SAN FRANCISCO--Analog and mixed-signal chip vendor Skyworks Solutions Inc. said Thursday (May 26) it signed a definitive agreement to acquire analog chip vendor Advanced Analogic Technologies Inc. (AATI) in a mostly cash deal worth about $264 million.
Under the terms of the agreement, Skyworks (Woburn, Mass.) will pay $6.13 for each share of AATI—a 52 percent premium above AATI's 30-day trailing average stock price. Skyworks will pay $3.68 of the $6.13 in cash, with the remainder being paid in Skyworks common stock valued at $2.45 per share, the company said.
Skyworks said the acquisition would expand its portfolio with complementary analog semiconductor products including battery chargers, DC/DC converters, voltage regulators and LED drivers. The analog power management market is expected to grow to $12.1 billion in 2014, up from $9.9 billion in 2010, according to Gartner market research.
"Skyworks' acquisition of Advanced Analogic Technologies will enable us to further capitalize on our strong smart phone, tablet, set-top box and infrastructure positions with an expanded and differentiated product portfolio while accelerating our entry into new vertical markets,” said David Aldrich, president and CEO of Skyworks, in a statement.
The transaction is subject to approval by AATI's shareholders and other closing conditions, Skyworks said.
Earlier this month, Skyworks announced a definitive agreement to acquire front-end RF solutions provider SiGe Semiconductor Inc. for up to $275 million in cash.