MaxLinear Completes $687 Million Acquisition of Exar

May 15, 2017 by Jeff Shepard

MaxLinear, Inc. has completed its previously announced acquisition of Exar, Inc. The acquisition significantly furthers MaxLinear's strategic goals of increasing revenue scale, diversifying revenues by end customers and addressable markets, and expanding its analog and mixed-signal footprint on existing tier-1 customer platforms. MaxLinear paid approximately $687 million in cash in connection with the acquisition.

Exar adds a diverse portfolio of high performance analog and mixed-signal products constituting power management and interface technologies that are ubiquitous functions in wireless and wireline communications infrastructure, broadband access, industrial, enterprise networking, and automotive platforms. MaxLinear intends to leverage combined technological expertise, cross-selling opportunities and distribution channels to significantly expand its serviceable addressable market.

We are pleased to complete the acquisition of Exar,” said Dr. Kishore Seendripu, CEO of MaxLinear. “Exar’s talented team and expertise in power management and interface technologies will enable us to more effectively serve our customers and furthers our goal of increased scale and diversification."

The transaction was conducted by means of a tender offer (the “Offer”) to acquire all of the outstanding shares of common stock of Exar for a purchase price of $13.00 per share, followed by a second-step merger. The Offer expired at 12:00 midnight (Eastern Time) at the end of May 11, 2017. As of the expiration of the Offer, a total of 44,385,399 Shares had been validly tendered into and not withdrawn pursuant to the Offer, representing approximately 85.4% of the outstanding Shares. An additional 895,150 Shares had been tendered by notice of guaranteed delivery, representing approximately 1.7% of the outstanding Shares at such time.

Following the acceptance of Shares tendered in the Offer, Purchaser acquired sufficient Shares to consummate the Merger without a vote of Exar’s stockholders and on May 12, 2017, following acceptance of the tendered Shares, a subsidiary of MaxLinear merged with and into Exar, with Exar surviving as a wholly-owned subsidiary of MaxLinear. According to the merger agreement, Exar stockholders will receive $13.00 for each Share outstanding immediately prior to the effective time of the merger.