Microchip Technology Incorporated, a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, and ISSC Technologies Corporation (ISSC) today announced that they have signed an agreement to acquire ISSC, a leading provider of low power Bluetooth and advanced wireless solutions for the Internet Of Things (IoT) market.
ISSC is publicly traded on the GreTai Securities Market and is headquartered in Hsinchu, Taiwan with customer service or research activities in Shenzhen, China and Torrance, California. In calendar year 2013, ISSC had net sales of US$69.2 million and an operating margin of 18.9 percent based on their reported results under International Financial Reporting Standards.
The transaction represents a total equity value of about NT$9.9 billion (approximately US$328.5 million), and a total enterprise value of about NT$8.9 billion (approximately US$294.3 million), after excluding ISSC’s cash and investments on its balance sheet of approximately NT$1 billion (approximately US$34.2 million). The acquisition is expected to be accretive to Microchip’s non-GAAP earnings per share in the first full quarter after completion of the tender offer at which time Microchip will own the majority of the outstanding shares of ISSC and consolidate its financial statements with Microchip’s.
The acquisition has been approved by the Boards of Directors of each company. The tender offer is expected to close in the third quarter of calendar 2014. The follow-on merger is expected to close in the fourth quarter of calendar 2014, subject to approval of the follow-on merger by ISSC stockholders, regulatory approvals and other customary closing conditions.
Steve Sanghi leads Microchip Technology as CEO and has helped the company flourish into one of Arizona’s top tech companies. He recently spoke at a TiE AZ Global Thought Leadership event where he shared his 11 guiding values of their corporate culture-values he believes have contributed to their success. Sanghi said, “Values are not what we say. They are what we practice.”
The new acquisition will bring in ISSC’s extensive knowledge of Bluetooth and wireless technologies and will strengthen Microchip’s goal of putting quality over quantity.
To learn more about Microchip Technology’s acquisition of ISSC click here
For AZTB’s past coverage of Microchip Technology Incorporated click here
Contributions from Hayley Ringle, Phoenix Business Journal
Graphics provided by Microchip Technology
