Analog buys Chiplogic for $100m

By Our Staff Reporter

HYDERABAD, DEC. 1. The U.S. based Analog Devices Inc (ADI) is acquiring Chiplogic, a California based company with R&D facilities at Hyderabad for about $100 million in stocks, which converts into 1.35 million shares of ADI, besides three lakh shares more under ESOP.

This was announced by Mr. Russ Johnsen, Vice-President and General Manager of Analog Devices Communications product division, and Mr. S. S. N. Prasad, CEO, Chiplogic, Hyderabad, at a press conference here on Thursday.

Chiplogic is a developer of high performance very large scale integrated circuits (VLSI) and system software focussed on convergence of voice, broadband access and network protocol processing.

The $2.6 billion ADI is a leading manufacturer of precision high performance ICs used in analogue and digital signal processing applications.

The entire transaction will be closed in 30 days. Chiplogic will be a fully owned subsidiary, and will be maintained as an R&D facility, Mr. Johnsen said.

ADI is already making a $3 to $4 million investment in upgrading facilities at chiplogic, which has 75 people in Hyderabad and 45 in California.

Mr. Johnsen said the acquisition was to access core technology and intellectual capabilities of Chiplogic, which had revenues of around $6 million.

With the addition of Chiplogic, ADI has the ingredients to offer world-class array of end-to-end solutions for braodband voice and video access.

The combination will enable new levels of integration of broadband access with voice networking process, he said.

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