Analog Devices has entered into a definitive agreement to acquire privately-held Integrant Technologies, Inc. (Integrant) of Seoul, Korea. An innovator in the field of high-performance analogue circuits designed for reconfigurable radio frequency (RF) signal processing, Integrant is the leading supplier of low-power radio tuners that allow mobile communications, computer, and consumer devices to receive digital television (TV) and digital radio broadcasts. Founded in 2000, Integrant has an established revenue base and gross margins consistent with highly-differentiated, low-power RF technology.

The acquisition is expected to increase ADI’s revenue by approximately 1% of sales in each of the next few quarters. Under the terms of the definitive stock purchase agreement, ADI expects to pay approximately US$127mn in cash at the closing in exchange for substantially all of the outstanding shares of Integrant. A portion of the consideration payable to the stockholders of Integrant will be placed into escrow to secure potential indemnification claims under the acquisition agreement and to facilitate the acquisition of the remaining shares not acquired at closing. ADI may pay up to an additional US$33mn upon the achievement of certain milestones. The boards of directors of both companies have approved the acquisition, which is expected to close within approximately 60 days, following the satisfaction of regulatory requirements and other customary closing conditions. Upon closing, ADI will record a one-time charge for purchased in-process research and development expenses. The amount of that charge has not yet been determined.
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