SiGe Opts for $275M Acquisition Instead of IPO

Andover, MA-based SiGe Semiconductor, which first revealed its plans to go public last July, is instead set to be acquired by another Bay State semiconductor technology company, Skyworks (NASDAQ: SWKS). Woburn, MA-based Skyworks, whose analog and mixed signal semiconductors have applications in the military, medical, broadband, mobile, industrial, automotive, and energy management spaces, will pay as much as $275 million for SiGe, with $210 million in cash upfront, and potentially $65 million more if certain milestones are met.

Last year, SiGe proposed to raise $143.8 million in an initial public offering. “Skyworks clearly represents the best strategic and cultural fit for SiGe Semiconductor,” said Sohail Khan, president and chief executive officer of SiGe Semiconductor, in an announcement of the deal. As of last year, SiGe had raised about $130.7 million through the sale of preferred stock. According to a filing amended in March, SiGe, which makes fabless semiconductors for wireless multimedia applications, had revenues last year of $103.3 million, and net profits of $4.1 million. The acquisition by Skyworks has been approved by both company’s boards, and is expected to close in June, subject to customary closing conditions.

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