Exar acquire Integrated Memory Logic

Supporting Exar's strategy of building a large scale diversified analog mixed-signal business, the gross transaction value will be $6.8bn (TWD) (approximately $223m (USD)), or $3.1bn (TWD) (approximately $94m (USD)), net of cash acquired. The tender offer is scheduled to expire at 3:00p.m. in Taipei, Taiwan, on Thursday, May 29, 2014, unless the tender offer is extended.

The transaction, which is expected to close in the second quarter of fiscal 2015, is subject to (i) the minimum tender of 70% of the then outstanding iML shares, (ii) the approval of the follow-on merger by iML shareholders, and (iii) other customary closing conditions.

As part of the tender offer, Exar's subsidiary has entered into an agreement with certain shareholders comprising approximately 32% of the outstanding shares of iML pursuant to which Exar's subsidiary would commence the tender offer and such shareholders have committed to accept the tender offer and to tender all iML shares owned by them into the tender offer. After the closing, iML will become a wholly owned subsidiary of Exar and iML stock will cease trading on the Taiwan Stock Exchange.

Louis DiNardo, President and CEO, Exar, comments: "The acquisition of iML will increase the diversity of the markets we serve and add highly differentiated analog mixed-signal and power management products to our portfolio. iML is a leading provider of power management and colour calibration solutions for large and medium-sized flat panel displays in the LED television market as well as high-resolution tablets. The company serves customers in Korea, Taiwan, Japan and China, which will enhance Exar's existing presence in these markets. Additionally, iML has demonstrated consistent profitability and gross margins that reflect the value of the company's differentiated products."