Exhibit 99.1
MediaTek to Acquire Analog Devices Cellular Handset Radio and
Baseband Chipset Operations
HSINCHU, Taiwan & NORWOOD, Mass.--(BUSINESS WIRE)--Sept. 10,
2007--MediaTek, Inc. (TWSE: 2454, "MediaTek"), one of the world's leading
fabless semiconductor companies for wireless communications and digital media
solutions, today announced that it has signed a definitive agreement to acquire
the assets related to the Analog Devices, Inc. (NYSE: ADI) Othello(R) radio and
SoftFone(R) baseband chipset product lines, as well as certain cellular handset
baseband support operations, for approximately US$350 million in cash. These
product lines represented approximately US$230 million in revenue for ADI, based
on fiscal year 2006 financial results.
Through this acquisition, MediaTek's wireless handset division gains: a
global team of approximately 400 experienced product development and customer
support professionals; an established customer base around the world; new radio
transceiver and baseband chipset products, including GSM, GPRS, EDGE, WCDMA, and
TD-SCDMA chipsets, to further strengthen its existing portfolio; and key patents
and intellectual property to increase MediaTek's competitiveness.
ADI plans to continue to invest in the wireless handset market by focusing
on developing high-performance analog, micro-electro mechanical systems (MEMS),
and programmable digital signal processing (DSP) products that enhance the
audio, video, connectivity, and power efficiency capabilities in a range of
wireless multimedia devices. According to Jerald G. Fishman, ADI's president and
CEO, "This transaction will allow ADI to focus our resources in areas where our
signal processing expertise can provide unique capabilities and earn superior
returns. In addition, it unlocks the value of the Othello and SoftFone
operations by creating the scale needed to support the R&D investment required
for sustainable, long-term success."
"This is a winning transaction for customers of both companies," said
JiChang Hsu, general manager of MediaTek's wireless business. "With these added
resources, our customers will be assured a roadmap of innovative solutions
supported by a talented team that is focused on the needs of the wireless
handset industry. Moreover, this acquisition will also bolster MediaTek's global
operations and development in converging consumer solutions."
The boards of directors of both companies have approved the transaction,
which is expected to close near the end of 2007, following the satisfaction of
regulatory requirements and other customary closing conditions. Tax assessments
and any additional closing costs will reduce the net amount of proceeds received
by ADI from the transaction.
In ADI's recently completed third quarter of fiscal year 2007, revenue from
these product lines represented $43 million, or 6% of revenue. ADI plans to
account for the divested operations as a discontinued operation. Excluding these
operations, ADI estimates that its third quarter of fiscal year 2007 gross
margin as a percentage of revenue would have been approximately 170 basis points
higher, operating margin as a percentage of revenue would have been
approximately 200 basis points higher, and diluted earnings per share would have
been approximately $0.01 higher.
About MediaTek Inc.
MediaTek Inc. is a leading fabless semiconductor company for wireless
communications and digital media solutions. The company is a market leader and
pioneer in cutting-edge System-On-Chip system solutions for wireless
communications, high-definition digital TV, optical storage, and high-definition
DVD products. Founded in 1997 and listed on Taiwan Stock Exchange under the code
"2454", MediaTek is headquartered in Taiwan and has sales and research
subsidiaries in China, India, U.S., Korea and Singapore. For more information,
please visit MediaTek's website at www.mtk.com.tw.
About Analog Devices
Innovation, performance, and excellence are the cultural pillars on which
Analog Devices has built one of the most long-standing, high-growth companies
within the technology sector. Acknowledged industry-wide as the world leader in
data conversion and signal conditioning technology, Analog Devices serves over
60,000 customers around the world, representing virtually all types of
electronics equipment. Celebrating more than 40 years as a leading global
manufacturer of high-performance integrated circuits used in analog and digital
signal processing applications, Analog Devices is headquartered in Norwood,
Massachusetts, with design and manufacturing facilities throughout the world.
Analog Devices' common stock is listed on the New York Stock Exchange under the
ticker "ADI" and is included in the S&P 500 Index. For more information, please
visit ADI's website at www.analog.com
This press release contains forward-looking statements, which address a
variety of subjects including, for example, the expected closing of the
transaction between ADI and MediaTek, the expected benefits of the transaction
to ADI, MediaTek, and customers, and ADI's expected future investments.
Statements that are not historical facts, including statements about beliefs and
expectations, are forward-looking statements. Such statements are based on
current expectations and are subject to a number of factors and uncertainties
which could cause actual results to differ materially. The following important
factors and uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking statements: the closing
of the transaction is subject to the receipt of regulatory approvals, the
receipt of third-party consents, and other material closing conditions, any
failure of which to satisfy may delay or prevent the closing of the transaction;
the transaction may involve unexpected costs, thereby reducing the net proceeds
to ADI; the expected benefits of the transaction may not be achieved in a timely
manner, or at all; and disruption from the transaction may adversely affect
relationships with customers, suppliers, or employees. For detailed information
about factors that could cause ADI's actual results to differ materially from
those described in the forward-looking statements, please refer to ADI's filings
with the Securities and Exchange Commission, including ADI's most recent
Quarterly Report on Form 10-Q. Forward-looking statements represent management's
current expectations and are inherently uncertain. We do not undertake any
obligation to update forward-looking statements made by us.
CONTACT: Financial Inquiries:
Analog Devices, Inc.
Maria Tagliaferro, 781-461-3601
Director of Corporate Communications
maria.tagliaferro@analog.com
or
Press Inquiries:
Analog Devices Inc.
Colleen Cronin, 781-937-1622
Media Relations Manager
colleen.cronin@analog.com