Intersil Announces Acquisition of Xicor

March 14, 2004 by Jeff Shepard

Intersil Corp. (Milpitas, CA) announced that it will acquire analog chipmaker Xicor Inc. (Milpitas, CA) for about $529 million. Intersil said the acquisition will allow it to expand the company's portfolio of high-growth analog products.

Under the terms of the agreement, each Xicor shareholder will receive the value of $8 per share in cash and $0.33 a share of Intersil common stock, equivalent to $15.58 per share of Xicor stock. Each Xicor shareholder may elect to receive all cash, stock or a combination of the two. Intersil said it expects to improve its cost structure through the consolidation of the two companies. With these cost savings and excluding the impact of amortization expenses, Intersil expects the acquisition to have no impact to its 2004 earnings per share and to but positive benefits to its 2005 earnings per share.