LONDON: US chip maker Cirrus Logic Inc is to buy Wolfson Microelectronics for an agreed £291m in cash, sending shares in the British company up more than 70 percent.
Wolfson, an Edinburgh-based company which specialises in audio technology, had suffered in recent months after missing out on a deal to make chips for the 4G version of Samsung Electronics Co Ltd’s Galaxy S4 smartphone.
Wolfson becomes the latest in a series of British technology groups to be bought by overseas interests in recent years, after Autonomy was sold to Hewlett-Packard Co, CGI Group Inc bought Logica and Misys was acquired by US-based Vista Equity Partners.
Cirrus, a supplier to Apple Inc, said the agreed 235 pence per share deal for its nearest rival would strengthen its portfolio and add new products such as Wolfson’s successful microphones.
Wolfson Chairman Michael Ruettgers said: “Together with Cirrus Logic, we believe this will create a powerful platform for future growth, above and beyond our standalone potential”.
Wolfson, which employs around 420 at 12 locations worldwide, also published first-quarter results showing slightly lower than expected revenue.
The group posted an underlying operating loss of $4.5m, up from $2.8m a year before, on revenue which slumped to $28.8m from $48.1m. Cirrus said its offer already had the backing of 7 percent of Wolfson’s investors.
Analysts at brokerage N+1 Singer said their confidence in Wolfson’s technology had not been fully reflected in the financial performance of the company, but said the bid showed the value of its expertise. Reuters
