Flash technology provider Spansion Inc. and Fujitsu Semiconductor Ltd. have executed a definitive agreement for Spansion to acquire the microcontroller and analog business of Fujitsu Semiconductor for approximately $110 million, plus approximately $65 million for inventory. The net impact is expected to be accretive for Spansion in 2013.
Strategically, Spansion expects the combination will accelerate a portfolio of high-performance system-on-chip solutions for use in the development of faster, more intelligent and energy-efficient products as well as for the next generation of the "Internet of everything" in automotive, industrial and consumer applications.
"This acquisition provides incremental revenue and aligns with our strategy to expand into system-on-chip solutions that require leadership in embedded flash technology," said John Kispert, president and CEO of Spansion. "We will gain valuable people and intellectual property as well as microcontroller and analog products that will enable us to expand our customer base, addressing complete embedded systems requirements in automotive, industrial and consumer markets.”
Spansion has had a strategic partnership with Fujitsu Semiconductor for decades and shares many of the same customers, according to Kispert.
Fujitsu said it is making the move in pursuit of maximized corporate value. “We have executed a management decision based on the restructuring initiatives we are taking in our semiconductor business," said Masami Yamamoto, president of Fujitsu Limited. "We are confident that our customers will benefit from the enormous synergies anticipated. Our employees will also benefit by being a part of Spansion, which has a complementary and differentiated product portfolio based on its world-leading nonvolatile memory technologies."
The acquisition is subject to various customary closing conditions and is expected to be complete between July and September of 2013.
