Acquisition Will Strengthen Analog Product Line for Core Markets
MILPITAS, Calif., March 16 /PRNewswire-FirstCall/ -- California Micro
Devices (Nasdaq: CAMD) announced today that it has entered into a definitive
agreement to acquire privately held Arques Technology, a fabless manufacturer
of innovative analog semiconductor devices. The acquisition of the Santa
Clara, California firm adds white LED drivers for mobile handsets and DDR
memory voltage regulators for digital consumer electronics products to the CMD
product portfolio.
"The acquisition of Arques Technology marks an important milestone in the
evolution of California Micro Devices," said Robert V. Dickinson, president
and chief executive officer. "In addition to strengthening our analog design
team and our portfolio of active analog devices, it also expands our presence
in Asia."
Under the terms of the agreement, the acquisition will be a cash
transaction consisting of an initial payment of approximately $8.0 million and
an earn out based on performance of the Arques product line during the
eighteen months after the acquisition is completed. The transaction is
expected to close in early April, 2006.
Founded in 2001, Arques currently has 25 employees at its Santa Clara
headquarters and its Taipei and Beijing locations, most of whom, according to
Dickinson, will be offered the opportunity to continue working in their
present positions. "We look forward to Arques employees joining our team and
playing key roles in driving our company's future growth," he added.
Commenting on the acquisition, Gerome Tseng, Arques president and CEO,
said, "We have great respect for California Micro Devices and the strong
position it has established in the markets we have been targeting. We believe
the combination of the two companies will lead to greater success than either
would achieve alone."
About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of application
specific analog semiconductor products for the mobile handset, personal
computer and digital consumer electronics markets. Key products include
Application Specific Integrated Passive(TM) (ASIP(TM)) devices and selected
high value mixed signal ICs. Detailed corporate and product information may be
accessed at http://www.calmicro.com.
All statements contained in this press release that are not historical
facts are forward-looking statements which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
They are not guarantees of future performance or events. Rather, they are
based on current expectations, estimates, beliefs, assumptions, and goals and
objectives and are subject to uncertainties that are difficult to predict. As
a result, our actual results may differ materially from the statements made.
Often such statements can be identified by their use of words such as will,
intends, expects, plans, believes, anticipates, and estimates. Forward-looking
statements made in this release include that we expect our acquisition of
Arques Technology to close in early April and strengthen our analog design
team and LED driver portfolio. These forward- looking statements are based
upon our assumptions about and assessment of the future, which may or may not
prove true, and involve a number of risks and uncertainties including, but not
limited to our acquisition of Arques not closing due to a failure of either
party to satisfy a closing condition or due to either party breaching our
agreement; key members of the Arques analog design teams deciding not to join
or to shortly thereafter quit our employment; and the Arques product portfolio
not being as robust as we expect when readied for production as well as the
risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the
Securities and Exchange Commission. Due to these and other risks, the
company's future actual results could differ materially from those discussed
above. These forward-looking statements speak only as to the date of this
release, and, except as required by law, we undertake no obligation to
publicly release updates or revisions to these statements whether as a result
of new information, future events, or otherwise.
NOTE: ASIP(TM) and Application Specific Integrated Passive(TM) are
trademarks of California Micro Devices.
All other trademarks are property of their respective owners
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