Analog Devices, Inc. (NASDAQ: ADI) today announced that it has signed a definitive agreement to sell the assets of its microphone product line to InvenSense, Inc. (NYSE: INVN). InvenSense will acquire the assets related to analog and digital output microphones, as well as certain support operations, for $100 million in cash. These microphones were primarily used in consumer applications and are expected to represent less than one percent of ADI’s total revenue in the fourth quarter of fiscal year 2013, which ends November 2, 2013.
“This agreement will allow ADI to focus on combining precision sensing technology and signal processing systems expertise to deliver the highest value to customers in our highest priority markets while driving sustainable growth and profitability for ADI,” said Mark Martin, vice president of ADI’s Sensor Products and Technology Group. “The impact of high performance inertial sensing innovation is increasing across automotive, industrial, and healthcare applications and we are focusing our resources accordingly.”
Pursuant to the agreement potential additional amounts will be payable to ADI upon achievement over twelve months of certain revenue milestones by InvenSense.
The boards of directors of both companies have approved the transaction, which is expected to close by the end of October 2013, following the satisfaction of customary closing conditions. Tax assessments and any additional closing costs will reduce the net amount of proceeds received by ADI from the transaction.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. Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices' common stock is included in the S&P 500 Index.
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