June 6, 2002 – Chandler, AZ – Microchip Technology Inc. has completed the acquisition of PowerSmart Inc., a privately held fabless semiconductor company, in a cash transaction.
Microchip paid some $54 million in cash, assumed a balance sheet with approximately $4 million in cash and other net assets, and assumed certain employee stock options. Approximately 40 employees from PowerSmart have joined Microchip.
PowerSmart delivers a battery management whole product solution which improves system runtimes up to 30% with a lower system cost for the user, the company said. Included in the whole product solution is an application tools suite to speed up implementation during the user’s development and production.
PowerSmart 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.
Microchip expects to have a one-time write off for in-process R&D related to the acquisition. Additionally, a portion of the purchase price will be amortized over two to five years, and a portion will be allocated to goodwill.