September 12, 2005 – AMI Semiconductor Inc. (AMIS) has successfully completed its acquisition of the semiconductor division of Flextronics for ~$138 million in cash, including acquisition-related expenses. Up to an additional $2.2 million may be paid within 30 days pending resolution of certain outstanding items.
Under the terms of the asset purchase agreement, AMIS acquired certain assets and assumed certain liabilities related to Flextronics’ custom mixed-signal products, imaging sensors and digital ASICs, including FPGA conversion products. AMIS is also working on another agreement with Flextronics to become a preferred supplier for mixed-signal ASICs, image sensors and FPGA conversions.
“We are excited about the synergies and strategic benefits of this acquisition, including the improved reach into Asia and the broadening of our offering with less-complex, higher-turn products in the mixed-signal and structured digital business,” stated Christine King, president and CEO of AMI Semiconductor.
AMIS financed the acquisition and related expenses using ~$29.4 million in cash and $108.6 million in funds received under a recently announced increase to its existing term loan.