June 20, 2005 – Integrated Device Technology Inc. has agreed to buy rival chipmaker Integrated Circuit Systems Inc. in a cash-and-stock deal valued at $1.7 billion.
The merger, announced Wednesday, is expected to close in the fall, after shareholder and regulatory approval. Under the deal approved by both companies’ boards, ICS stockholders will receive 1.300 shares of IDT common stock and $7.25 in cash for each share of ICS stock. In the year ending March 31, IDT and ICS had combined sales of about $645 million and a cash flow of $86 million, the companies said.
IDT, which was founded in 1980, mainly supplies chips that perform calculations and switching functions in networking gear. ICS specializes in timing chips used in computers, consumer electronics, networking gear, and military applications, the company said.