Gennum, a provider of IP and semiconductor services, has entered into an agreement to acquire all of the issued and outstanding shares of Tundra Semiconductor.
According to the company, the transaction, which is valued at approximately C$86 million, adds new digital switch and bridge products and functionality to Gennum and builds on Gennum’s growth strategy of extending its signal integrity expertise and services to a broader set of markets.
Gennum anticipates that, when completed, the transaction will augment Gennum’s global sales and channel network, and will enable Gennum to leverage Tundra’s customer relationships in Asia and China.
According to the company, cash synergies of approximately US$10 million can be realized following the completion of the transaction beginning in the current fiscal year resulting from all areas of operations. The acquisition is anticipated by Gennum to be accretive to earnings this fiscal year, excluding one-time costs.
Gennum expects that the combined portfolio will deliver highly differentiated mixed-signal and interconnect products that capture the silicon content in applications such as wireless, wireline infrastructure, industrial, medical, server and storage equipment.
Franz Fink, president and CEO of Gennum, said: “Through the acquisition of Tundra, Gennum is positioned to achieve its financial objectives and accelerate the development of differentiated, interconnect and signal integrity products.”
