AnalogicTech agrees to acquire the power management analogue business of IPCore Technologies Corporation

Focused on the design of highly integrated analogue power management ICs, AP Semi develops key components for many of the same mobile consumer electronics markets AnalogicTech currently targets. AP Semi’s customers are primarily located in China, Taiwan, and Japan. The acquired business has 52 employees, including approximately 32 engineers.

“The acquisition of AP Semi will allow us to immediately expand our engineering team and establish a fully-staffed Shanghai design centre,” said Richard K. Williams, President, CEO, and CTO of AnalogicTech. “This move complements our ongoing product design and development activities targeted at portable consumer electronic devices, such as digital still cameras, personal media players, and mobile phones. It also will allow us to extend value to our customers by increasing our presence in key markets in China, Japan, and Taiwan, and provide local design support.”

Under the terms of the agreement, AnalogicTech will purchase AP Semi and certain related assets from IPCore for approximately $22 million in cash, in addition to certain transaction related expenses. Subject to customary closing conditions, the acquisition is expected to close in early October 2006 and to be neutral to earnings in the second half of 2007.