Cirrus continues buying spree

Aug. 10, 2001 — AUSTIN, TX — Cirrus Logic Inc., a supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics, has signed an agreement to acquire Stream Machine Company, a supplier of MPEG-2 video recording technology based in Milpitas, CA.

Cirrus Logic will pay an estimated $110 million for Stream Machine in this stock-for-stock transaction. The acquisition has been approved by the boards of directors of both companies and is expected to close in October following customary regulatory approvals.

Stream Machine’s proprietary compression technology provides the video for multiple home entertainment applications, such as digital-video-disc (DVD) recorders, personal video recorders (PVRs), digital camcorders and PC video peripherals. This acquisition will strengthen Cirrus Logic’s vision of providing “Total Entertainment” (Total-E) solutions for next generation, networked home entertainment applications.

This is the fourth acquisition announced in five months by Cirrus Logic, representing an aggregate total of $278 million in primarily stock-for-stock transactions.

With representative offices in Beijing and Shenzhen, China, Stream Machine is a 5-year-old, privately held, fabless semiconductor company with about 55 employees. Stream Machine develops semiconductor solutions that enable affordable, high quality, digital audio and video products for home entertainment applications. The company has been awarded four patents and has 11 patents pending.


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