), a leading provider of analog and mixed-signal integrated
circuits (ICs), successfully concluded its bid to acquire the
outstanding stock of Integrated Memory Logic (IML). The transaction
is valued at $223 million.
The tender offer seeks to buy approximately 92% of IML's
outstanding shares at a proposed price of around $3.02 per share.
Any remaining shares will be acquired by Exar in a follow-on
The offer follows Exar's announcement of a definitive merger
agreement on Apr 27 to this fabless semiconductor design company
through its wholly-owned subsidiary Image Sub Ltd. The deal is
expected to conclude in second-quarter fiscal 2015, subject to
customary closing conditions. Following the merger, IML will become
a wholly-owned subsidiary of Exar.
IML designs optical and flash storage technology for display and
LCD panels that are used by tablets, notebooks, PC monitors and LCD
televisions. The acquisition will augment Exar's product portfolio
by adding differentiated analog mixed-signal and power management
products to its offerings. The merger will unlock significant value
once Exar leverages IML's strategic partnerships with major
original equipment manufacturers.
IML's core competencies in areas of system interface and analog
circuit implementation distinguish it from broad-based suppliers.
The company also boasts an impressive client list as well. The
integration of the capabilities and resources of both companies
will generate immediate synergies and provide scale benefits,
resulting in enhanced market shares.
Exar will also capitalize on the opportunity to expand its
footprint in the markets of Korea, Taiwan, Japan and China where
IML has a strong presence.
Exar expects the transaction to be immediately accretive to its
pro-forma earnings per share. The proposed acquisition is expected
to consolidate its market share in the semiconductor design
Exar currently sports a Zacks Rank #1 (Strong Buy). Other stocks in
the industry that are worth considering include
Applied Micro Circuits Corp.
PLX Technology Inc.
Advanced Micro Devices, Inc.
). While Applied Micro Circuits and PLX have a Zacks Rank #1
(Strong Buy) each, Advanced Micro Devices carries a Zacks Rank #2
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