Boston, MA 04/29/2014 (wallstreetpr) – As Cirrus Logic, Inc. (NASDAQ:CRUS) seeks inexpensive growth, the company said it agreed to acquire Wolfson Microelectronics, a company that develops audio chips used in a wide range of electronic devices including smartphone and tablet.
Wolfson Microelectronics asked its shareholders to support the deal citing its premium valuation of the company and significant benefit it has in store for the shareholders.
Cirrus will pay about 235p per share of Wolfson, which values the entire transaction to about £291 million. The per share purchase price offer of 235p reflects more than 75 percent price premium over the closing price of the stock Wolfson yesterday.
Executive comments
According to Michael Ruettgers, chairman of Wolfson, the deal is an attractive offer for the shareholders and the board of the company saw the same in agreeing to the deal. Moreover, the fact that Cirrus Logic, Inc. (NASDAQ:CRUS) is ready to pay a premium price for Wolfson reflects prestigious standing of the company due to the hard work of its executives led by CEO Mike Hickey.
On his part, the CEO of Cirrus Jason Rhode observed that the acquisition will boost the company’s product portfolio besides adding new and first-class customers. Therefore, the company expects Wolfson to help it differentiate its products in the market.
Wolfson reported Q12014 revenues of £17.1 million or $28.8 million. That compared with revenue of $48.1 million in a year ago quarter.
