Intersil buys ATE market analog IC supplier

IntersilCorp. has entered into definitive agreement to acquire Planet ATE Inc., a privately held, fabless semiconductorsupplier to the ATE market.

Planet ATE chips offer the high-integration and low-power solution for the per-channel analog content within ATE. It currently generates between $10 million to $12 million in annual revenues, and is growing at a rate above that of the analog market.

The company expects to pay approximately $46 million net in cash at closing in exchange for all outstanding shares of capital of Planet ATE. Additional consideration of up to $12 million in cash may be payable to the former holders of Planet ATE capital stock upon satisfaction of certain performance goals in 2008. The closing, which is expected to occur during Intersil's Q3 ending September 28, remains subject to customary closing conditions. Intersil may record a one-time charge to operating income for purchased in-process R&Dexpenses when the closing occurs. The amount of that charge, if any, has not yet been determined.

"Planet ATE is a great acquisitionand provides Intersil with a very profitable new product family," said Rich Beyer, Intersil's CEO. "Intersil should enable Planet ATE to further expand its customer base, and Planet ATE should enable Intersil to further penetrate the ATE marketwith our expanding portfolio of high-performance analog products."