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MERGERS & ACQUISITIONS
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Conexant sells for $284 million

New York-based Standard Microsystems is paying cash and stock, and will assume the Newport Beach-based firm's debt.

By Kristen SchottPublished: January 10, 2011 09:31 AM

Newport Beach-based Conexant Systems is being acquired by Standard Microsystems Corp. (SMSC) for $284 million. The New York-based tech firm is paying stock and cash, and will assume Conexant's net debt.

Conexant, which has more than 200 local employees – and 600 worldwide – develops semiconductors used in imaging, audio, embedded modem and video surveillance applications. SMSC makes semiconductor solutions that distribute video, sound, photos and data in home, automobile, office and factory uses.

Under the deal, the combined companies will provide a larger set of computing, consumer, industrial and automotive applications, and will offer customers a complete product lineup. Conexant is expected to continue to maintain a strong engineering presence in Newport Beach, said Conexant spokeswoman Gwen Carlson.

"SMSC and Conexant share similar core competencies in analog and mixed-signal design, possess complementary product portfolios and count many customers in common," said Scott Mercer, chairman and CEO of Conexant. "By joining forces, we get the opportunity to take advantage of economies of scale and drive profitable growth. I am convinced that combining our companies will best serve the interests of Conexant stockholders, customers, and employees moving forward."

Additionally, Sailesh Chittipeddi, who currently serves as Conexant's president and chief operating officer, will join SMSC as executive vice president. He will be responsible for engineering, operations, quality and marketing, and he will report to SMSC President and CEO Christine King.

“We believe that combining the growth potential of Conexant and SMSC will allow us to leverage complementary technology and engineering resources to provide our customers with expanded solutions in connectivity and content,” said King. “We plan to focus our resources on the areas of highest return and believe that our respective sales and supply chain relationships will help create a platform to grow our businesses."

The transaction is expected to close in the first half of the year.

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