Fremont, California, July 8, 2013 – Exar Corporation (Nasdaq: EXAR), a leading provider of high-performance analog mixed-signal products and data management solutions, today announced that it has acquired Cadeka Microcircuits. The transaction, which closed on Friday, July 5, 2013, includes $29.0 million in initial consideration to be paid in a combination of cash and stock, and an earn-out against net revenues contributed by Cadeka.
With locations in Loveland, Colorado and both Shenzhen and Wuxi, China, Cadeka designs, develops and markets precision analog integrated circuits for use in industrial and high reliability applications. Cadeka provides precision operational amplifiers, instrumentation amplifiers, comparators, filters and data converter products to a wide array of electronic equipment manufacturers in the medical electronics, aerospace, test and measurement, surveillance and industrial control markets.
"The Cadeka team has worked together in various formations for the better part of 25 years and brings to Exar deep product and design experience in the area of high-performance and precision analog circuit design and product development," commented Exar President and CEO Louis DiNardo. "Cadeka's products provide best in class performance and, in many cases, are direct or indirect replacements for solutions from Analog Devices, Linear Technology, and National Semiconductor, which was acquired by Texas Instruments. We expect that the acquisition will be neutral to modestly accretive to our profitability immediately. When we couple Cadeka's product offering with our global presence and reach, we will be able to grow revenue quickly and provide meaningful operating leverage," concluded Mr. DiNardo.
Gary Ross, Cadeka's President and CEO, will join Exar and report directly to Mr. DiNardo as Vice President and General Manager of High Performance Analog Products. Mr. Ross commented, "The Cadeka team hails from the founding of Comlinear Corporation in the early 1980's. No learning curve will be needed for either team as we share the same rich history and commitment to excellence in high-performance and precision analog product design and development. The combined company will build on Cadeka's success in Asia and penetrate the large market for precision analog components in North America and Europe."
About Cadeka
Cadeka Microcircuits is a global supplier of over 400 high-performance analog and mixed-signal semiconductor products for customers who require cost-effective, leading edge performance. Cadeka's expertise and passion is to "Amplify the Human Experience"™ by providing application specific, solution-based semiconductor products that drive the industry's next generation communications, industrial, instrumentation, consumer, and medical products. For more information about Cadeka, visit http://www.cadeka.com.
About Exar
Exar Corporation designs, develops and markets high-performance, analog mixed-signal integrated circuits and advanced sub-system solutions for the Networking & Storage, Industrial & Embedded Systems, and Communications Infrastructure markets. Exar's product portfolio includes power management and connectivity components, high-performance analog and mixed-signal products, communications products, and network security and storage optimization solutions. Exar has locations worldwide providing real-time customer support. For more information about Exar, visit http://www.exar.com.
"Forward-Looking" and "Safe-Harbor" Statements are omitted