Intersil Corp. (Irvine, CA) and Elantec Semiconductor Inc. (Milpitas, CA) announced the signing of a definitive agreement for Intersil to acquire Elantec. Under the terms of the agreement, Elantec shareholders will receive 1.24 shares of Intersil stock and $8.00 in cash for each Elantec share. Based on Intersil's closing price of $36.65 per share on March 8, 2002, the implied transaction exchange ratio is 1.458 shares of Intersil stock for each Elantec share.
Upon the close of the transaction, Greg Williams, Intersil president and CEO, will serve as executive chairman of the board of directors, working on corporate, wireless and analog strategy. Rich Beyer, Elantec president and CEO, will become president and CEO of Intersil. Beyer and current Elantec Chairman Jim Diller will join Intersil's board of directors.
“This combination of two synergistic high-growth companies adds Elantec's leadership in analog optical storage and flat panel displays to Intersil's leadership in wireless LAN and power management,” said Williams. “In addition, Elantec's product offerings in communication ICs and standard analog will strengthen Intersil's portfolio of analog ICs. The product lines are complementary and will enhance Intersil's unique value proposition to our strategic customers.”
“There is a strong fit between the two companies,” said Beyer. “Our strategies of creating high-performance products for targeted growth markets have enabled both Intersil and Elantec to outperform the industry during the recent cycle.”
