Cirrus Logic To Acquire Wolfson Microelectronics

Cirrus Logic, Inc. (Austin TX) is acquiring Wolfson Microelectronics plc (Edingburgh, Scotland) at a price of £2.35 per share in cash, implying an enterprise value of £278 million, or about $467 million. The transaction will be financed by existing cash and $225 million in debt funding. “Wolfson has a rich history of audio innovation, a broad catalog of audio products and a first-class customer list,” said Jason Rhode, Cirrus Logic President/CEO, adding, “This acquisition strengthens Cirrus Logic’s core business as a leader in audio signal processing components, enhances our ability to differentiate our products with software and adds new product categories, such as MEMS microphones to our portfolio.” Michael Ruettger, Chairman of the Board of Wolfson Microelectronics, said, “We believe this will create a powerful platform for future growth, above and beyond our standalone potential.”

The acquisition is expected to be completed in the second half of 2014. Cirrus Logic expects the acquisition to be accretive to non-GAAP earnings per share in the first full quarter after the transaction closes (excluding the impact of one-time integration and acquisition related costs). The transaction is subject to regulatory approvals and the approval of Wolfson shareholders.

Sound & Communications
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