“U.S. chip maker Cirrus Logic Inc is to buy Wolfson Microelectronics Plc for an agreed 291 million pounds ($489 million) in cash, sending shares in the British company up more than 70 percent,” Kate Holton reports for Reuters.
“Wolfson, an Edinburgh-based company which specialises in audio technology, had suffered in recent months after missing out on a deal to make chips for the 4G version of Samsung Electronics Co Ltd’s Galaxy S4 smartphone,” Holton reports. “Cirrus, a supplier to Apple Inc, said the agreed 235 pence per share deal for its nearest rival would strengthen its portfolio and add new products such as Wolfson’s successful microphones. Wolfson Chairman Michael Ruettgers said: ‘Together with Cirrus Logic, we believe this will create a powerful platform for future growth, above and beyond our standalone potential.'”
Holton reports, “Dan Ridsdale, analyst at Edison Investment Research, said: Cirrus had got a good deal. ‘While (Wolfson’s) Q1 results were weak as expected, we feel that Cirrus is buying this business at a trading nadir and believe that a recovery in (business) … primarily at Samsung should drive a strong recovery in H2,’ Ridsdale said. In its results statement, Wolfson said it was strengthening its relationship with Samsung with a number of design wins.”
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