Apr 28 2010
Intersil Corporation (NASDAQ: ISIL), a world leader in the design and manufacture of high performance analog and mixed signal semiconductors, announced today the closing on April 27, 2010 of its acquisition of Techwell, Inc. (NASDAQ: TWLL).
The Company previously announced its proposed acquisition of Techwell on March 22, 2010.
Intersil issued debt of $300 million at a floating interest rate of approximately 5% to complete the transaction. The remainder of the purchase price was paid through corporate cash. Techwell now is an indirect, wholly-owned subsidiary of Intersil, and its common stock will cease to be traded on the NASDAQ Global Select Market.
Techwell designs and sells mixed signal video semiconductor solutions for the security surveillance and automotive infotainment markets, enabling the conversion and processing of analog video signals to digital form to facilitate the display, storage and transport of video content. Major applications include industrial DVRs, networked video recorders, multiplexers, as well as automotive front consoles, rearview mirrors and rear seat LCD displays.
"The Techwell acquisition brings Intersil unique capabilities that complement our industrial video market businesses," said Dave Bell, Intersil's President and Chief Executive Officer. "We look forward to Techwell's mixed signal video products helping to significantly increase our overall industrial business, which will become our largest end market," continued Mr. Bell.
The acquisition is expected to be accretive to Intersil's 2010 earnings, excluding one-time costs and other acquisition-related charges. Intersil will update its financial guidance to include Techwell's pro-rated contribution in the second quarter 2010 during its annual Investor & Analyst Day on May 14, 2010.