Hsinchu, Taiwan and Norwood, Massachusetts, Sep. 10 , 2007 — MediaTek, Inc. (TWSE: 2454, “MediaTek”), one of the world's leading fabless semiconductor companies for wireless communications and digital media solutions, today announced that it has signed a definitive agreement to acquire the assets related to the Analog Devices, Inc. (NYSE: ADI) Othello® radio and SoftFone® baseband chipset product lines, as well as certain cellular handset baseband support operations, for approximately US$350 million in cash. These product lines represented approximately US$230 million in revenue for ADI, based on fiscal year 2006 financial results.
Through this acquisition, MediaTek’s wireless handset division gains: a global team of approximately 400 experienced product development and customer support professionals; an established customer base around the world; new baseband chipsets and radio transceiver products, including GSM, GPRS, EDGE, WCDMA, and TD-SCDMA chipsets to further strengthen its existing portfolio; and key patents and intellectual property to increase MediaTek’s competitiveness.
“This is a winning transaction for customers of both companies,” said JiChang Hsu, general manager of MediaTek’s wireless business. “With these added resources, our customers will be assured a roadmap of innovative solutions supported by a talented team that is focused on the needs of the wireless handset industry. Moreover, this acquisition will also bolster MediaTek’s global operations and development in converging consumer solutions.”
ADI plans to continue to invest in the wireless handset market by focusing on developing high- performance analog and programmable DSP products that enhance the audio, video, connectivity, and power efficiency capabilities in a range of wireless multimedia devices. According to Jerald G. Fishman, ADI’s president and CEO, “This transaction will allow ADI to focus our resources in areas where our signal processing expertise can provide unique capabilities and earn superior returns. In addition, it unlocks the value of the Othello and SoftFone operations by creating the scale needed to support the R&D investment and the cost leadership required for sustainable, long-term success.”
The boards of directors of both companies have approved the transaction, which is expected to close by the end of 2007, following the satisfaction of regulatory requirements and other customary closing conditions.
About MediaTek Inc.
MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital media solutions. The company is a market leader and pioneer in cutting-edge SOC system solutions for wireless communications, high-definition digital TV, optical storage, and high- definition DVD products. Founded in 1997 and listed on Taiwan Stock Exchange under the code "2454", MediaTek is headquartered in Taiwan and has sales and research subsidiaries in China.
About Analog Devices
Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the most long-standing, high-growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers around the world, representing virtually all types of electronics equipment. Celebrating more than 40 years as a leading global manufacturer of high-performance integrated circuits used in analog and digital signal processing applications, Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices' common stock is listed on the New York Stock Exchange under the ticker “ADI” and is included in the S&P 500 Index. For more information, please visit ADI’s website at www.analog.com