SUNNYVALE, Calif., Sept. 8, 2010 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) announced today that it has acquired privately held Phyworks Ltd. for approximately $72.5 million in cash.
Maxim CEO Tunc Doluca remarked: "Business and consumer appetite for access to information anywhere, anytime, will continue to grow exponentially. The backbone to support the increased data traffic is high-speed optical networks. Additionally, optical networks are now beginning to reach consumers directly with fiber to the home. The addition of Phyworks' product portfolio and talent to Maxim strengthens our market position to capitalize on this growth."
Acquisition Highlights:
-- The acquisition is synergistic to Maxim's optical transceiver product line and opens up new high-speed product opportunities.
- The combination of the two companies will provide a broad and powerful set of solutions for customers.
- Phyworks' products for fiber-to-the-home (FTTH) applications complement Maxim's datacom and telecom portfolio.
- Maxim and Phyworks combined will have market share leadership for transceiver chips for optical modules.
- Phyworks' know-how opens up additional high-speed signal integrity product opportunities for Maxim.
-- Phyworks has been successful in the Optical Infrastructure market.
- An outstanding engineering organization has achieved fast new product time-to-market.
- Leadership in bringing highly integrated products to the market has enabled module makers to produce very cost effective solutions.
-- Going forward, Maxim's brand name will strengthen customer traction.
-- The high-speed market presents a large growth opportunity.
- This growth is driven by huge demand for data rich applications (high-definition video distribution and cloud computing)
- Served market for optical transceivers and high-speed signal integrity products is estimated to be $340 million in 2014
-- The acquisition is immediately accretive.
- Phyworks' gross margin is better than the Maxim average.
- With synergies, the acquired operating margin is better than Maxim's excluding acquisition-related charges and amortization.
"Phyworks is very pleased to be joining Maxim," said Stephen King, President and CEO of Phyworks. "As the optical communications markets continues to evolve, technologies from both companies can be combined to create higher performance, lower cost solutions that will enable end users to build next generation optical networks. Maxim is the ideal partner for our customers and for our employees, and this combination strengthens Maxim's position as a leader in the markets we share."
RBC Capital Markets Corporation acted as financial advisor to Phyworks in connection with the transaction.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements concerning Maxim's acquisition of Phyworks Ltd. These forward-looking statements are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Maxim's belief that business and consumer appetite for access to information anywhere, anytime, will continue to grow exponentially, and the backbone to support the increased data traffic is high-speed optical networks; Maxim's belief that the addition of Phyworks' product portfolio and talent will strengthen Maxim's market position to capitalize on this growth; Maxim's belief that Maxim and Phyworks combined will have market share leadership for transceiver chips for optical modules; Maxim's belief that the served market for optical transceivers and high-speed signal integrity products is estimated to be $340 million in 2014; Maxim's estimate that the acquisition is immediately accretive to earnings; and Maxim's estimate, with synergies, the acquired operating margin will be better than Maxim's excluding acquisition-related charges and amortization. These statements are based on current expectations and are subject to certain risks, uncertainties and assumptions, many of which are outside the control of Maxim. These risks and uncertainties include, but are not limited to: changes in semiconductor market conditions and demand for optical transceiver products; technological and product development risks; the future performance of Phyworks as part of Maxim; the timing and success of Maxim's integration of Phyworks with Maxim's existing businesses, including the successful transition of personnel, product development, manufacturing and information systems; the ability to realize anticipated synergies; competition; and general economic and business conditions.
For a detailed discussion of factors affecting Maxim's business generally and other factors that may influence future results, please see Maxim's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended June 26, 2010, as well as similar disclosures in subsequent SEC filings. Maxim does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Maxim
Maxim Integrated Products is a publicly traded company that designs, manufactures, and sells high-performance semiconductor products. The Company was founded over 27 years ago with the mission to deliver innovative analog and mixed-signal engineering solutions that add value to its customers' products. To date, it has developed over 6400 products serving the industrial, communications, consumer, and computing markets.
The Maxim Integrated Products, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5753
Maxim reported revenue of approximately $2.0 billion for fiscal 2010. A Fortune 1000 company, Maxim is included in the Nasdaq 100, the Russell 1000, and the MSCI USA indices. For more information, go to www.maxim-ic.com.
About Phyworks
Phyworks Ltd., a privately held company founded in 2001 and based in Bristol, UK, is a developer of high-speed communications chips designed to significantly cut the cost of 10 Gbps and below copper and optical interconnects. Its primary investors are Add Partners, Advent Venture Partners, Atlas Ventures, and DFJ Esprit.
The company sells its products into telecom - specifically FTTH - and datacom markets worldwide. Phyworks has a substantial presence in the PON market, with customers in the U.S. and Asia, including China, Korea and Japan. For more information, go to www.phyworks-ic.com.