September 18, 2006
Analog Devices Inc. (NYSE: ADI) today announced that it has acquired privately held AudioAsics A/S, a Danish company consisting of a team of experienced developers of high-performance, low-power microphone and audio signal conditioning technology. The combination of ADI’s signal processing capabilities with AudioAsics’ expertise is expected to result in miniature, low-power audio solutions that provide better sound quality in portable consumer and communications products like MP3 players, cell phones and PDAs. ADI paid approximately $19 million in cash at the closing in exchange for all of the outstanding shares of AudioAsics. In addition, upon the achievement of certain milestones following the closing, ADI would be obligated to pay up to an additional $8 million.
AudioAsics was founded in 2003 as a privately held company in Roskilde, Denmark, with funding from Danish investors Vaekstfonden, SEED Capital Denmark, and Hvista. ADI expects to expand its presence in Denmark by creating a center of excellence for low-power audio implementation, leveraging the 100 years of collective experience and distinguished reputation among audio designers of the 18 employees of AudioAsics. Analog Devices also will maintain and expand AudioAsics’ facility in Bratislava, Slovakia. AudioAsics’ CEO, Michael Deruginsky, will remain with ADI working within ADI’s audio group.
“We are going to bring big sound to small form factors using AudioAsics know-how in low-power and ADI’s core technologies, AudioAsics allows Analog Devices to continue developing our low-power audio capabilities, while expanding our presence in the Nordic and Eastern European regions,” said Dick Meaney, ADI vice president for Precision Signal Processing. “From a product and technology perspective, AudioAsics has the bases covered by bringing together the signal conditioning required by high-performance microphones and marrying that with low-power mixed-signal capability, which is a must-have in any portable application.”
AudioAsics designs low-voltage, low-power audio ASICs, including analog-to-analog and analog-to-digital pre-amplifiers for use in miniature microphones and receivers as well as high-performance analog-to-digital converters and speaker drivers. AudioAsics is currently shipping products that support both ECM (electret microphone) and MEMS-based microphone solutions. Industrywide, microphone unit shipments are projected to reach more than 2.5 billion in 2008, according to The Information Network, while industry trends indicate MEMS-based digital microphones will represent the majority of all microphone shipments by 2010. The acquisition of AudioAsics enables Analog Devices to offer a complete portfolio of low-power audio products extending across the signal chain, including ADI’s SigmaDSP® and Blackfin® processors and Class D amplifiers.
“Analog Devices was a natural fit for AudioAsics when we saw how well our analog, digital and mixed-signal processing and IP complemented ADI’s audio signal chain offerings,” said AudioAsics’ Deruginsky. “We’re excited about the commitment Analog Devices is making to grow our team and increase our competitive position in the microphone pre-amp marketplace.”
This press release contains forward-looking statements, which address a variety of subjects including, for example, the expected benefits of ADI’s acquisition of AudioAsics, the expected integration of ADI’s and AudioAsics’ technologies, products and customers following the transaction, the expected growth in the markets for ADI’s and AudioAsics’ products, and ADI’s expected growth plans, facility expansion, product development and technical advances following the transaction. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the transaction may involve unexpected costs; the expected benefits of the transaction may not be achieved in a timely manner, or at all; AudioAsics’ business, products or technologies may not be successfully integrated with those of ADI; the markets for our products may not achieve the expected growth; disruption from the transaction may adversely affect AudioAsics’ relationships with its customers, suppliers or employees; and ADI may be unable to achieve the expected product development and technical advances following the transaction. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to ADI’s filings with the Securities and Exchange Commission, including the risk factors contained in ADI’s most recent Quarterly Report on Form 10-Q. Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us.
About Analog Devices
Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the longest standing, highest growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers, representing virtually all types of electronic equipment. Celebrating 40 years as a leading global manufacturer of high-performance integrated circuits used in analog and digital signal processing applications, Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices’ common stock is listed on the New York Stock Exchange under the ticker “ADI” and is included in the S&P 500 Index.
SigmaDSP and Blackfin are registered trademarks of Analog Devices Inc.