South Portland, Maine - September 11, 2000 -- Fairchild Semiconductor International (NYSE: FCS) announced today the successful acquisition of KOTA Microcircuits, Inc., based in Loveland, Colorado, and the power management business of Micro Linear, based in San Jose, California, significantly expanding Fairchild's global analog business.
Fairchild acquired the two companies for $21 million in cash and stock. "We expect the combined revenue of these companies to reach $30 to $40 million in calendar year 2001. That's a prudent investment in my book," says Kirk Pond, Fairchild's president, chairman and CEO. "This is good for Fairchild Semiconductor, our shareholders and our customers."
KOTA Microcircuits positions Fairchild with leading technology in the operational amplifier market, representing a $2.8 billion total available market in 2000, according to the WSTS. The acquisition will expand Fairchild's penetration into markets that include cellular phones, CD-R/W drives and portable applications.
Micro Linear's power management business broadens Fairchild's extensive analog portfolio with products that include offline power switches, low power battery management, video filters and bus terminators.
In 28 months Fairchild has grown its analog business from zero to $400 million and its target is to reach $1 billion within three years. Fairchild has built a rapidly growing analog business that is now among the top five power analog players. Expertise includes core design capabilities of MCU, PWM, LDO and programmable devices, in three key process technologies, BiCMOS, BiDMOS and CMOS. With a full range of voltage and currents Fairchild offers technologies optimized for Power Conversion/Management, Data Conversion and Analog Signal Processing. Fairchild offers its customers the ability to design products and rapidly ramp up to manufacturing on a worldwide basis.
Fairchild manufactures over 700 analog devices including the top 100 highest volume products. All of these have either been developed or acquired since March 1997. The Micro Linear and KOTA businesses will add another 550 products to Fairchild's analog line. Fairchild has introduced over 80 new analog products in this calendar year.
Fairchild Semiconductor's Phase II growth plan includes strategic acquisitions, as well as an emphasis on new product development. "We're not finished yet," says Joe Martin, Fairchild's executive vice president and chief financial officer. "Acquisition is still on our agenda. We're looking for businesses that can increase our product portfolio, give us entry into a new regional market, and add to our earnings. Acquisition remains part of our strategy."