Business
Gennum Signs Definitive Agreement to Acquire Tundra Semiconductor
Cdn$86 million transaction combines two leading, high tech Canadian companies increasing global m...
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[{"type":"text","content":"\n\n\n\nCdn$86 million transaction combines two leading, high tech Canadian\ncompanies increasing global market presence and scale to deliver more\ndifferentiated products\n\n\nBURLINGTON and OTTAWA, ON, March 19 /CNW Telbec/ - Gennum Corporation\n(TSX: GND) and Tundra Semiconductor Corporation (TSX: TUN) today announced\nthey have entered into a definitive agreement providing for the acquisition by\nGennum of all of the issued and outstanding shares of Tundra, a supplier of\nsystem interconnect products and intellectual property (IP) to the world's\nleading communications, computing and storage companies. The transaction,\nwhich is valued at approximately Cdn$86 million, adds new digital switch and\nbridge products and functionality to Gennum and builds on Gennum's growth\nstrategy of extending its high-speed signal integrity expertise and solutions\nto a broader set of markets.\n\n\nThe transaction is expected to result in a number of benefits for the\ncombined business, including the following:\n\n- Added scale and increased market presence in an expanded,\n US$1.9 billion total addressable market\n\n- A strongly positioned business in signal integrity, bridges and\n switches using RapidIO(R), VME, SDI and HDMI standards, as well as in\n PCI Express(R) (PCIe)\n\n- Increased global customer base and stronger existing customer\n penetration with broadened product portfolio\n\n- Expanded sales and distribution network in key growth regions such as\n Asia and China\n\n- Increased research and development capacity to develop more\n differentiated new products faster\n\n- Expected cash synergies of approximately US$10 million\n\n- Based on synergies, expected to be accretive this fiscal year,\n excluding one-time costs\n\n- Strong cash position on completion of the transaction\n\n\nThe purchase price payable by Gennum for each Tundra common share will\nbe, at the election of the holder, Cdn$4.43 in cash or 1.1575 common shares of\nGennum ("Gennum Shares") or a combination thereof, subject to pro ration as\ndiscussed below. Based on 19,326,053 Tundra current outstanding common shares,\nin aggregate, a total of $55 million cash and 8.0 million common shares of\nGennum will be issued to holders of Tundra common shares. Based on Gennum's\nfive day volume weighted average share price on the Toronto Stock Exchange\nending on Ma...