Cirrus Logic puts in $467M bid for Scottish electronics company

Apr 29, 2014
Austin Business Journal

Chipmaker Cirrus Logic Inc. has an agreement in place to acquire Scotland-based Wolfson Microelectronics PLC, a developer of portable audio applications

The acquisition, which is scheduled to be completed during the second half of the year, is worth $467 million and would be be financed by a combination of existing cash coupled with $225 million in debt funding, according to a Tuesday news release

In pre-market trading Tuesday, Cirrus Logic shares surged nearly 5 percent, reaching $23.10. Cirrus Shares have been on a strong run since April 24, with four straight days of gains

Austin-based Cirrus Logic (Nasdaq: CRUS), founded in 1984, develops integrated circuits for products such as smartphones, tablets and other electronic devices. It employs about 652 workers

The Wolfson (LON: WLF) deal would be the second acquisition in six months for Cirrus Logic, which has been dogged by critics who claim the company is too reliant on one major customer, Apple Inc. (Nasdaq: AAPL)

In October 2013, Cirrus Logic acquired Arizona-based Acoustic Technologies Inc. for an undisclosed amount

Last week, Cirrus Logic Inc. posted a fourth-quarter profit of $12.6 million, or 20 cents per share, on revenue of $149.6 million compared with a profit of $26.3 million, or 41 cents per share, on revenue of $206.8 million during the year-earlier period

For its non-GAAP earnings in the quarter, however, Cirrus Logic easily beat analysts’ estimates of 32 cents per share, coming in with 41 cents per share

Print Article opens in new window