Micrel Announces Agreement to Acquire Kendin Communications
Micrel Inc. (San Jose, CA) announced that it has reached an agreement to acquire Kendin Communications Inc. (Sunnyvale, CA), a fabless semiconductor company. In connection with the acquisition, Micrel will issue approximately 6.2 million shares of its common stock and options in exchange for all outstanding Kendin securities and options to purchase Kendin securities.
The implied transaction value is approximately $215 million. The transaction is expected to be completed in the quarter ending June 30, 2001, subject to customary regulatory approvals, and is intended to be accounted for as a pooling-of-interests. It is expected to be modestly accretive to Micrel's earnings per share beginning in the third calendar quarter of 2001. Micrel expects to record one-time acquisition-related charges in the June 30, 2001 quarter of between $8 million to $10 million.
“We are very excited to join forces with Micrel," said Dr. Tian Liou, founder and CEO of Kendin. “Not only is Micrel a very high-caliber company, but our two organizations also share a common vision and commitment to delivering high-performance analog and mixed-signal communications solutions that provide true value to our customers."