Zarlink Semiconductor Inc. today announced it has entered into an agreement to acquire privately held Legerity Hold...
June 25, 2007
Zarlink Semiconductor Inc. today announced it has entered into an agreement to acquire privately held Legerity Holdings Inc. based in Austin, Tex., a developer and supplier of voice ICs (integrated circuits) for carrier, enterprise and residential gateway equipment.
Under the terms of the agreement, Zarlink will acquire Legerity for US$134.5 million in cash, subject to working capital adjustments.
Zarlink says it will fund the acquisition through a combination of its cash resources and, as required, draw down on a bridge facility of up to US$50 million.
The company has secured a commitment letter for the financing for the transaction through a syndicate of lenders led by CIBC and including the National Bank of Canada, the Royal Bank of Canada and the Bank of Nova Scotia.
“This acquisition will accelerate and expand Zarlink’s plans for the voice-over-packet market,” said Kirk Mandy, president and CEO of the Kanata, Ont. company.
We share a very similar customer, but are not direct competitors.”