Tundra Semiconductor Acquires Potentia Power Controller Business
Tundra Semiconductor Corp. announced the acquisition of Potentia Semiconductor Corp. ("Potentia Canada") for CDN$1.4 million in cash. The acquisition includes the power controller business of Potentia Canada that Tundra will continue to operate. Tundra is not acquiring the digital video display device business of Potentia Canada. This business including all of its current employees and its customers will proceed as a new venture under the "Potentia Semiconductor Corp." name.
The acquisition adds five new power controllers to Tundra's product portfolio. The Tsi205™, Tsi206™, Tsi248™, Tsi252™ and Tsi257™ power controllers are now available from Tundra's worldwide sales network. Tundra's new power controllers offer customers an integrated solution to control power distribution in next-generation communications, networking and storage systems, resulting in faster time-to-market and reduced design complexity.
"This acquisition brings Tundra a number of positive benefits. A broader product offering to our current customer base as well as additional revenue, margin and tax benefits," said Jim Roche, President and Chief Executive Officer, Tundra. "By adding these devices to our product portfolio, customers can take advantage of Tundra's leadership in System Interconnect combined with industry-leading power controller devices."
"Although we expect a one time gain in the range of $4.5 to $5.0 million to our GAAP earnings in this fiscal quarter, we are not adjusting our previous guidance nor do we expect a significant impact to our pro-forma earnings in the future," said Norm Paquette, Chief Financial Officer, Tundra. "Tundra will fully reinvest the product revenue, margin and tax benefits from this acquisition in its System Interconnect strategy."
