Intersil to buy Techwell

LONDON: Intersil Corporation, the analog circuit designer and manufacturer, based in Milpitas, California, the United States, has entered into a definitive agreement to buy Techwell Incorporated, headquartered in San Jose, California.

In a statement, Intersil Corporation said the acquisition was being made through a cash tender offer at $18.50 per share.

Techwell, a fabless semiconductor firm which designs and sells mixed-signal video solutions for the security surveillance and automotive infotainment markets, has over 200 employees in the United States, Japan, South Korea, Taiwan and China.

Dave Bell, president and CEO of Intersil Corporation, explained in the statement that Techwell’s team and products will expand Intersil’s leadership in two high-growth industrial markets. The addition of Techwell’s mixed-signal video products, Dave Bell added, will help Intersil’s customers build solutions that improve performance, cut overall costs and shorten time-to-market. Besides, the acquisition will increase considerably Intersil’s overall industrial business.

Intersil Corporation said it has obtained a financing commitment of $390 million from Morgan Stanley Senior Funding Incorporated and that it intends to finance the deal through debt.

The board of directors of Techwell has unanimously approved the acquisition and also recommended that the shareholders of Techwell accept the offer of $18.50 per share.