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Silicon Laboratories to buy Cygnal Integrated Products Inc
By siliconindia
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Friday, 26 September 2003, 19:30 IST
AUSTIN: Silicon Laboratories Inc. will buy Cygnal Integrated Products Inc., which specializes in analog-intensive, integrated 8- bit microcontrollers, for an initial 1.2 million of its common shares.
The mixed-signal integrated circuit company said it will place up to an additional 1.3 million of its shares on reserve for the future issuance to Cygnal's shareholders based on the achievement of certain revenue milestones following the closing of the transaction. Silicon Labs expects the deal to close during the fourth quarter, which ends in December.
Silicon Laboratories currently has about 49.3 million shares outstanding.
In a press release Thursday, Silicon Laboratories said it expects the transaction to be slightly dilutive to earnings in 2004, though add to earnings in 2005.
Wall Street expects the company to earn $1.12 a share during 2004, based on the expectations of nine analysts.
Last year, the company earned $20.7 million, or 41 cents a share, on revenue of $182 million.
The company's shares fell to $47.68 a share in after-hours trading, according to Island ECN (News - Websites). The company's shares closed the regular day of trading at $48.33.
A Silicon Laboratories spokeswoman was not available to describe the revenue milestones that relate to the additional 1.3 million shares.
Silicon Labs is attempting to diversify its own integrated circuit product line with the purchase of Cygnal, which has a portfolio of more than 50 general purpose products.