Microchip Signs Agreement to Acquire PowerSmartMay 23, 2002 by Jeff Shepard
Microchip Technology Inc. (Chandler, AZ) announced that it has signed a definitive agreement to acquire PowerSmart Inc. (Shelton, CT). Microchip will pay approximately $54.0 million in cash, and will assume a balance sheet with approximately $4.0 million in cash and other net assets, and assume certain employee stock options. The transaction has been approved by the boards of directors of both companies and is expected to close by June 15, 2002, following approval by PowerSmart's stockholders.
"This acquisition will complement Microchip's microcontroller offerings in the office automation, consumer and automotive market segments by strengthening our position in battery management applications such as laptop computers, personal digital assistants, cellular telephones, digital cameras, digital camcorders, uninterruptable power supplies and hybrid-electric vehicles," said Microchip President and CEO Steve Sanghi.
PowerSmart President and CEO J. Norman Allen stated, "Over the last four years, PowerSmart has developed the most accurate and cost-effective smart battery ICs now available, including our recently launched Accuron IC for laptops. We are now pleased to join hands with microcontroller powerhouse Microchip Technology, whose IC technology, in-house fabrication and selling channels will greatly enhance our ability to provide customers with leading-edge products in battery management across the full spectrum of battery-dependent devices."