Microchip Completes PowerSmart AcquisitionJune 25, 2002 by Jeff Shepard
Microchip Technology Inc. (Chandler, AZ) announced that it has completed the acquisition of PowerSmart Inc. (Shelton, CT), a privately held fabless semiconductor company, in a cash transaction. Microchip paid approximately $54.0 million in cash, assumed a balance sheet with approximately $4.0 million in cash and other net assets, and assumed certain employee stock options. Approximately 40 employees from PowerSmart have joined Microchip.
Microchip President and CEO Steve Sanghi said, "Combining PowerSmart’s leading-edge, battery-management technology and whole product sales solution with Microchip’s leadership FLASH embedded control technology and cost-efficient manufacturing will enable us to provide generations of cost-effective, high-performance, battery management, integrated circuits to existing and new customers. Further, it will position us well to take advantage of the growing opportunity of smart battery management, and a strong trend towards mobility and portability, requiring battery-powered devices. This acquisition is expected to strengthen Microchip’s position in battery-management applications such as laptop computers, personal digital assistants, cellular telephones, digital cameras and camcorders, and UPS systems."