Cirrus Logic Announces Agreement to Acquire Lion Semiconductor
July 08 2021 - 4:02PM
Business Wire
Acquisition Expands Company’s Portfolio of
High-Performance Mixed-Signal Technologies with the Addition of
Fast-Charging ICs
Cirrus Logic, Inc. (Nasdaq: CRUS) today announced that it has
entered into an agreement to acquire California-based Lion
Semiconductor for $335 million in cash. This acquisition brings
unique intellectual property and products for power applications in
smartphones, laptops and other devices and accelerates growth of
the company’s high-performance mixed-signal business. Lion is
expected to be immediately accretive to GAAP and non-GAAP earnings
per share, contributing approximately $60 million in revenue
between deal close and the end of FY22.
“The acquisition of Lion Semiconductor adds further momentum to
our strategy of applying our mixed-signal expertise to new markets
and driving growth through innovation in areas such as power,” said
Cirrus Logic President and Chief Executive Officer John Forsyth.
“Lion’s proprietary fast-charging products and robust intellectual
property portfolio are expected to contribute meaningfully to
revenue growth in the coming years, strengthen the company’s
position to pursue exciting new opportunities and significantly
expand our addressable market.”
“We are thrilled to become a part of Cirrus Logic’s remarkable
team and culture,” said Lion’s Chief Executive Officer Wonyoung
Kim. “Cirrus Logic excels in delivering advanced mixed-signal
technologies to the industry’s most demanding customers. We believe
our world-class charging technology and innovative
switched-capacitor architectures will help put even more Cirrus
Logic solutions at the heart of the world’s best battery-powered
products.”
Lion Semiconductor’s switched-capacitor architectures enable
outstanding wired and wireless fast-charging user experiences and
are used today in numerous flagship and mid-tier smartphones. These
solutions are integrated close to the battery and deliver higher
efficiency and better heat dissipation for the rapidly developing
fast-charging market. Incorporated in 2012, Lion has operations in
San Francisco and Seoul, South Korea.
Transaction Details
- Cirrus Logic to pay $335 million in cash
- Expected to contribute approximately $60 million in revenue
between deal close and the end of FY22
- Gross margin is expected to be supportive of corporate
margins
- Expected to be immediately accretive to GAAP and non-GAAP
earnings per share
- The boards of directors of both companies have approved the
transaction, which is expected to close within 30 days, subject to
customary closing conditions
A presentation providing more detail on the transaction is
available on Cirrus Logic’s Investor Relations website. The company
will address questions regarding the acquisition of Lion
Semiconductor during the Q1 FY22 earnings call on July 28,
2021.
Cirrus Logic, Inc.
Cirrus Logic is a leader in low-power, high-precision
mixed-signal processing solutions that create innovative user
experiences for the world’s top mobile and consumer applications.
With headquarters in Austin, Texas, Cirrus Logic is recognized
globally for its award-winning corporate culture. Check us out at
www.cirrus.com.
© 2021 Cirrus Logic, Inc. All rights reserved.
# # #
Safe Harbor Statement
Except for historical information contained herein, the matters
set forth in this news release contain forward-looking statements
including our statements about the company’s expectations to
accelerate or drive the growth of the Company’s high-performance
mixed-signal business; to contribute meaningfully to revenue growth
in the coming years; to strengthen our position to pursue exciting
new opportunities; to expand our addressable market; to put more of
our solutions at the heart of battery-powered products; to have
gross margins supportive of corporate margins; to contribute
approximately $60 million in revenue between deal close and the end
of FY22; to be immediately accretive to earnings per share; and
that the transaction will close within 30 days. In some cases,
forward-looking statements are identified by words such as
“expect,” “anticipate,” “target,” “project,” “believe,” “goals,”
“opportunity,” “estimates,” “intend,” and variations of these types
of words and similar expressions. In addition, any statements that
refer to our plans, expectations, strategies or other
characterizations of future events or circumstances are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates, and assumptions and
are subject to certain risks and uncertainties that could cause
actual results to differ materially and readers should not place
undue reliance on such statements. These risks and uncertainties
include, but are not limited to, the following: recent increased
industry-wide capacity constraints that may impact our ability to
meet current customer demand, which could cause an unanticipated
decline in our sales and damage our existing customer relationships
and our ability to establish new customer relationships; the
potential for increased prices due to capacity constraints in our
supply chain, which, if we are unable to increase our selling price
to our customers, could result in lower revenues and margins that
could adversely affect our financial results; the failure of the
acquisition to close as a result of a failure to meet closing
conditions; our ability to effectively integrate the business and
operations of Lion Semiconductor, including our ability to retain
key employees following the acquisition; any material adverse
changes in the customers of Lion Semiconductor and/or any material
adverse changes in the business or financial condition of Lion
Semiconductor; the level of orders and shipments, customer
cancellations of orders, or the failure to place orders consistent
with current forecasts for fast-charging IC products, along with
the risk factors listed in our Form 10-K for the year ended March
27, 2021, and in our other filings with the Securities and Exchange
Commission, which are available at www.sec.gov. The foregoing
information concerning our business outlook represents our outlook
as of the date of this news release, and we expressly disclaim any
obligation to update or revise any forward-looking statements,
whether as a result of new developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210708005720/en/
Bill Schnell Cirrus Logic, Inc. (512) 851-4084
bill.schnell@cirrus.com
Mary Ninow-Thomaere Strategic Communications, Inc. (916)
350-1032 mnthomaere@strategiccom.biz
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