IDT Divests PCIe Enterprise Flash Controller Business to PMC-Sierra, Inc.
Sharpens Product Focus while Improving Operating Margins
SAN JOSE, Calif. -- May 29, 2013
Integrated Device Technology, Inc. (IDT®) (NASDAQ: IDTI) today announced it
has signed a definitive agreement to divest its PCI Express^® (PCIe)
enterprise flash controller business and related PCIe ^ intellectual property
assets to PMC-Sierra, Inc. (NASDAQ: PMCS). The purchase consideration consists
of approximately US$100 million in cash, subject to certain purchase price
adjustments. The transaction has received appropriate board approvals, but
will be subject to applicable regulatory and closing conditions. The
transaction is anticipated to close in the third quarter of calendar 2013.
“The divestiture of our PCIe flash controller business enables IDT to
capitalize on our early investments in this disruptive technology,” said Ted
Tewksbury, president and CEO at IDT. “Going forward, we will focus our R&D
investments on advanced timing, wireless power, memory interface, and
communications signal chain solutions. This enhanced focus will accelerate
operating margin expansion while sustaining long-term revenue growth.”
Integrated Device Technology, Inc., the Analog and Digital Company™, develops
system-level solutions that optimize its customers’ applications. IDT uses its
market leadership in timing, serial switching and interfaces, and adds analog
and system expertise to provide complete application-optimized, mixed-signal
solutions for the communications, computing and consumer segments.
Headquartered in San Jose, Calif., IDT has design, manufacturing, sales
facilities and distribution partners throughout the world, with direct
purchase services through IDT Direct™. IDT stock is traded on the NASDAQ
Global Select Stock Market® under the symbol “IDTI.” Additional information
about IDT is accessible at www.IDT.com. Follow IDT on Facebook, LinkedIn,
Twitter, and YouTube.
Certain statements in this press release may contain forward-looking
statements related to IDT, including but not limited to statements regarding
the anticipated closing date of the transaction, IDT’s anticipated research
and development investments and IDT’s anticipated operating margin expansion
and long-term revenue growth. All statements included in this press release
concerning activities, events or developments that IDT expects, believes or
anticipates will or may occur in the future are forward-looking statements.
Forward-looking statements are based on current expectations and projections
about future events and involve known and unknown risks, uncertainties and
other factors that may cause actual results and performance to be materially
different from any future results or performance expressed or implied by
forward-looking statements, including but not limited to those risks and
uncertainties in IDT’s Annual Report on Form 10-K for the fiscal year ended
March 31, 2013 filed with the Securities and Exchange Commission. All
forward-looking statements are made as of the date of this release and IDT
disclaims any duty to update such statements.
IDT and the IDT logo are trademarks or registered trademarks of Integrated
Device Technology, Inc. All other brands, product names and marks are or may
be trademarks or registered trademarks used to identify products or services
of their respective owners.
IDT Press Contact:
Graham Robertson, 408-284-2766
IDT Corporate Marketing
IDT Investor Contact:
Mike Knapp, 408-284-6515
IDT Investor Relations
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