Cirrus Logic Announces Agreement to Acquire Lion Semiconductor
AUSTIN, Texas--(BUSINESS WIRE)--Cirrus Logic, Inc. (Nasdaq: CRUS) today announced that it has entered into an agreement to acquire California-based Lion Semiconductor for $335 million in cash. This acquisition brings unique intellectual property and products for power applications in smartphones, laptops and other devices and accelerates growth of the company’s high-performance mixed-signal business. Lion is expected to be immediately accretive to GAAP and non-GAAP earnings per share, contributing approximately $60 million in revenue between deal close and the end of FY22.
“The acquisition of Lion Semiconductor adds further momentum to our strategy of applying our mixed-signal expertise to new markets and driving growth through innovation in areas such as power,” said Cirrus Logic President and Chief Executive Officer John Forsyth. “Lion’s proprietary fast-charging products and robust intellectual property portfolio are expected to contribute meaningfully to revenue growth in the coming years, strengthen the company’s position to pursue exciting new opportunities and significantly expand our addressable market.”
“We are thrilled to become a part of Cirrus Logic’s remarkable team and culture,” said Lion’s Chief Executive Officer Wonyoung Kim. “Cirrus Logic excels in delivering advanced mixed-signal technologies to the industry’s most demanding customers. We believe our world-class charging technology and innovative switched-capacitor architectures will help put even more Cirrus Logic solutions at the heart of the world’s best battery-powered products.”
Lion Semiconductor’s switched-capacitor architectures enable outstanding wired and wireless fast-charging user experiences and are used today in numerous flagship and mid-tier smartphones. These solutions are integrated close to the battery and deliver higher efficiency and better heat dissipation for the rapidly developing fast-charging market. Incorporated in 2012, Lion has operations in San Francisco and Seoul, South Korea.
- Cirrus Logic to pay $335 million in cash
- Expected to contribute approximately $60 million in revenue between deal close and the end of FY22
- Gross margin is expected to be supportive of corporate margins
- Expected to be immediately accretive to GAAP and non-GAAP earnings per share
- The boards of directors of both companies have approved the transaction, which is expected to close within 30 days, subject to customary closing conditions
A presentation providing more detail on the transaction is available on Cirrus Logic’s Investor Relations website. The company will address questions regarding the acquisition of Lion Semiconductor during the Q1 FY22 earnings call on July 28, 2021.