May 23, 2002 – Chandler, AZ – Microchip Technology Inc. has signed a definitive agreement to acquire PowerSmart Inc., a privately held fabless semiconductor company.
Microchip will pay some $54 million in cash, and will assume a balance sheet with approximately $4 million in cash and other net assets, and assume certain employee stock options.
The transaction has been approved by the boards of directors of both companies and is expected to close by June 15, 2002, following approval by PowerSmart’s stockholders.
Headquartered in Shelton, CT, and with operations in Plano, Texas, and Needham, MA, PowerSmart is a four-year-old company formed as a spin-off from Duracell with about 40 employees.
PowerSmart develops and sells high-accuracy field-programmable embedded control ICs and battery sensors based on these ICs. Its posted net sales of approximately $1 million in CY01, and is expected to contribute approximately $7 to $8 million in revenue to Microchip in FY03, and about $14 to $16 million in revenue in FY04.
“This acquisition will complement Microchip’s microcontroller offerings in the office automation, consumer, and automotive market segments by strengthening our position in battery management applications such as laptop computers, personal digital assistants, cellular telephones, digital cameras, digital camcorders, uninterruptable power supplies, and hybrid electric vehicles,” said Steve Sanghi, Microchip president and CEO.