IDT to Acquire ZMDI for $310 Million
October 26 2015 - 4:06PM
Business Wire
- Adds $20M of quarterly revenues to IDT
at 57% gross margins
- Accretive to earnings in first full
quarter following close
- IDT gains a growing Automotive &
Industrial business, with immediate sales leverage for current
products
- Creates an industry franchise in
Intelligent Power semiconductors. ZMDI adds new digital power
products addressing Communications Infrastructure and Data Center
requirements
- ZMDI products are largely sole-sourced,
with very long product life cycles and high margins. Synergies
recognized in first year of operation will reach IDT’s target
business model of 60% GM
Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today
announced an agreement to acquire privately held ZMDI (Zentrum
Mikroelektronik Dresden AG) for total consideration of $310M in
cash. The acquisition provides IDT with a highly regarded
Automotive & Industrial business, and extends their technology
leadership in high performance programmable power devices and
timing & signal conditioning.
Automotive & Industrial provides a significant new growth
opportunity. IDT gains immediate leverage for new designs in
Wireless Charging, Power Management, and Timing & Signal
Conditioning. ZMDI’s business is already well established and
positioned for growth, and benefits immediately from IDT’s scale
and technology.
“This move accelerates progress to our $800M annual revenue goal
within our industry benchmark financial performance by over a
year,” said Gregory Waters, IDT President & CEO. “IDT’s
strategy is unchanged, but our product and technology position is
significantly expanded. Our target market segments of Consumer,
Communications, and High Performance Computing all benefit from
additional product, revenue, and customer relationships that
bolster our commitment to outgrow the semiconductor market by at
least a factor of two.”
IDT extends their rapidly growing line of programmable power
devices, with new high-power products addressing Communications
Infrastructure and Data Center applications. This creates a new
industry franchise for high performance, scalable power management
solutions that cover applications ranging from Wireless Charging to
Solid State Drives to Data Centers & 4G/5G basestations.
“We gain an exceptional group of talented people and
intellectual property from ZMDI, who join one of the technology
industry’s fastest growing companies. With the added benefit of
IDT’s cost structure and high volume manufacturing capability, we
expect ZMDI revenues to achieve a similar financial model as IDT’s
existing business in the first year of combined operations,” Waters
added.
ZMDI’s signal conditioning products provide an elegant interface
between microcontrollers and analog components, such as sensors.
This is extremely complimentary to IDT’s Advanced Timing products,
and will enable intelligent systems that are aware of their
surroundings, and can adjust system performance, timing, and power
management automatically.
“We’re enthusiastic to join with IDT, and create the best
positioned product innovation team in the mixed-signal
semiconductor industry,” said Thilo von Selchow, President and CEO
of ZMDI. “It’s rare to see such a potent combination that not only
provides a powerful financial result, but more importantly
establish the product and technology teams that will lead the
industry in innovative new products and growth for this
decade.”
The transaction has been unanimously approved by the board of
directors of both companies, with closing expected before calendar
end.
About ZMDI
Zentrum Mikroelektronik Dresden AG (ZMDI) is a global supplier
of sensing and digital power semiconductor solutions for
automotive, industrial, medical, mobile sensing, information
technology and consumer applications. These solutions enable our
customers to create the most energy-efficient products in sensing,
power management and lighting. See more at www.zmdi.com.
About IDT
Integrated Device Technology, Inc. develops system-level
solutions that optimize its customers’ applications. IDT uses its
market leadership in timing, serial switching and interfaces, and
adds analog and system expertise to provide complete
application-optimized, mixed-signal solutions for the
communications, computing and consumer segments. Headquartered in
San Jose, Calif., IDT has design, manufacturing, sales facilities
and distribution partners throughout the world. IDT stock is traded
on the NASDAQ Global Select Stock Market® under the symbol “IDTI.”
Additional information about IDT is accessible at www.IDT.com.
Follow IDT on Facebook, LinkedIn, Twitter, YouTube and Google+.
Forward Looking Statements
Remarks about IDT’s future expectations, plans and prospects
constitute forward-looking statements for purposes of the
safe-harbor provisions under applicable federal securities laws.
Actual results may differ materially from the forward-looking
statements contained herein. Additional information concerning
these and other risk factors is contained in the Risk Factors
sections of IDT's most recently filed Forms 10-K and 10-Q. IDT
undertakes no obligation and does not intend to update the
forward-looking statements set forth herein.
IDT and the IDT logo are trademarks or registered trademarks
of Integrated Device Technology, Inc. All other brands,
product names and marks are or may be trademarks or registered
trademarks used to identify products or services of their
respective owners.
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Financial Contact:IDT Investor RelationsSuzanne Schmidt,
415-217-4962suzanne@blueshirtgroup.comorPress Contact:IDT
Worldwide MarketingGraham Robertson,
408-284-2644graham.robertson@idt.com
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