(Manufacturing.net) — Fremont, Calif.-based Exar Corporation (Nasdaq: EXAR) has announced today its acquisition of Cadeka Microcircuits, a designer and developer of precision analog integrated circuits. The transaction, which closed on July 5, amounted $29 million and was paid in a combination of cash and stock, and an earn-out against net revenues contributed by Cadeka.
Cadeka maintains a location in Loveland, Colo., and two Chinese facilities, in Shenzhen and Wuxi. Between those facilities, the company provides precision operational amplifiers, instrumentation amplifiers, comparators, filters and data converter products to a wide array of electronic equipment manufacturers in the medical electronics, aerospace, test and measurement, surveillance and industrial control markets.
Louis DiNardo, president and CEO of Exar, said in a statement: “The Cadeka team has worked together in various formations for the better part of 25 years and brings to Exar deep product and design experience in the area of high-performance and precision analog circuit design and product development. Cadeka’s products provide best in class performance and, in many cases, are direct or indirect replacements for solutions from Analog Devices, Linear Technology, and National Semiconductor, which was acquired by Texas Instruments. We expect that the acquisition will be neutral to modestly accretive to our profitability immediately. When we couple Cadeka’s product offering with our global presence and reach, we will be able to grow revenue quickly and provide meaningful operating leverage.”
Cadeka’s president and CEO, Gary Ross, will join Exar and report directly to DiNardo as Vice President and General Manager of High Performance Analog Products. Mr. Ross commented, “The Cadeka team hails from the founding of Comlinear Corporation in the early 1980’s. No learning curve will be needed for either team as we share the same rich history and commitment to excellence in high-performance and precision analog product design and development. The combined company will build on Cadeka’s success in Asia and penetrate the large market for precision analog components in North America and Europe.”